If Randall and Gale Agree to an Assignment of Randall's

question 52

Multiple Choice

If Randall and Gale agree to an assignment of Randall's contract with Doug:

• A) there is no ambiguity; this is an assignment of rights only.
• B) there is no ambiguity; this is a delegation of duties only.
• C) under both the Code and the Restatement, unless circumstances or language indicate the contrary, an assignment of "the contract" means the assignment of rights and a delegation of duties.
• D) the language is ambiguous and, therefore, the assignment is unenforceable.

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Definitions:

Overhead

The ongoing expenses of operating a business that are not directly associated with the production of goods or services.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production, related specifically to the manufacturing process, such as rent, utilities, and salaries of permanent staff.

Machine-Hours

A measure of machine usage, representing the total hours a machine operates during a specific period.

Volume Variance

The difference between the expected (budgeted) volume of production or sales and the actual volume, affecting costs and revenues.