In the Development of the Law of Negotiable Instruments, Which

question 38

Multiple Choice

In the development of the law of negotiable instruments, which of the following was not a step?

• A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee.
• B) Contractual rights became assignable to third parties.
• C) The law of assignments changed to permit assignees to obtain greater rights than their assignors.
• D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject.

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Definitions:

Weighted-average

A calculation that takes into account both the quantity and the significance of the items being averaged.

FIFO

A cost flow assumption for inventory and financial accounting where the first goods purchased or produced are the first to be sold.

FIFO Inventory

An inventory costing method that assumes the items purchased or produced first are sold first, thereby remaining inventory consists of items added most recently.