If a Negotiable Instrument Is Assigned, the Assignee Has

question 372

Multiple Choice

If a negotiable instrument is assigned, the assignee has:

• A) no rights or liabilities after assignment
• B) the same contract rights as the assignor, but is relieved assignor's responsibilities
• C) the same responsibilities as the assignor, but not the contract rights of the assignor
• D) neither the rights or responsibilities of the assignors; those are determined by a new contract between the parties
• E) none of the other choices

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Definitions:

Guaranteed Payment

Payments made to a partner within a partnership that are made without regard to the partnership's income and are guaranteed for services or use of capital.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, and may also cover regular medical services or long-term nursing care needs.

Pre-Contribution Gain

The increase in value of an asset or investment before it is contributed to a retirement plan or investment account.

Appreciated Property

Property that has increased in value over time, which can impact capital gains tax when sold.