Barbara Owes Arthur $2,000

question 27

Multiple Choice

Barbara owes Arthur $2,000.On July 1, Arthur assigns the debt to Caleb.Thereafter on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee.David immediately notifies Barbara of the assignment.In this case:

• A) under the English Rule, a second assignment of the same claim can never be effective.
• B) under all of the rules, Caleb has priority since he was the first assignee in time.
• C) under the English Rule, David has priority.
• D) under the majority rule, David has priority.

---

Definitions:

Cognitive Miser

A theory suggesting that humans, to save mental energy, prefer to solve problems in the simplest way possible rather than in a more sophisticated but effort-intensive way.

Mentally Lazy

A reluctance or lack of desire to engage in cognitive tasks or challenges, preferring minimal mental effort or thought.

Process-oriented

Focused on the methods and procedures of accomplishing tasks or understanding phenomena, rather than solely on outcomes.

Problem Solvers

Individuals or groups that identify, analyze, and find solutions to complex or challenging situations.