When Contract Terms Prohibiting the Assignment of Rights Exist, Most

question 20

Multiple Choice

When contract terms prohibiting the assignment of rights exist, most courts will:

• A) strictly construe them.
• B) interpret a general term prohibiting assignments as a mere promise not to assign.
• C) award the obligor a right to damages for the breach of the terms forbidding the assignment.
• D) All of these.

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Definitions:

Factory Overhead Allocated

The distribution of manufacturing indirect costs to products based on a predetermined rate or method.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used to allocate labor costs to products.

Multiple Production

A manufacturing strategy involving the concurrent production of several items or product lines in a single facility.

Direct Labor Hours

The total hours worked directly on producing goods, an important factor in costing and efficiency analyses.