Adam Bought a Boat from Charlie for $900 Payable on November

question 27

Multiple Choice

Adam bought a boat from Charlie for $900 payable on November 6. On November 6, when Charlie came for the money, Adam didn't have it. Adam was, however, employed by Ms. Bey to do some market research. He was to be paid $1000 for his report, due on November 12. Charlie wanted an assignment of $900 of the amount Adam expected to receive November 12. Adam wrote out an assignment with all the essential information and signed it. Charlie gave written notice of the assignment with all pertinent information to Ms. Bey the next day, November 7. On November 12, Adam had not finished his report. The contract provided that he would lose $100 for every week he was late. Adam was two weeks late in submitting his report. Which of the following is true?

• A) The assignment fails to be an assignment at all because Adam failed to get the consent of Ms. Bey.
• B) This assignment is a statutory assignment.
• C) Ms. Bey must honour the notice of assignment by paying out the $900 on the day the notice was received.
• D) Charlie, the assignee, would receive $800 from Ms. Bey and have to look to Adam for the other $100 owed.
• E) Charlie would get nothing because Ms. Bey owed less than the amount assigned.

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Definitions:

Total Cost of Goods Sold

The sum of all costs directly involved in producing or purchasing products sold by a company during a given period.

High-low Method

A technique used to estimate fixed and variable components of costs by analyzing the highest and lowest levels of activity.

Utilities Cost

The expenses incurred for utilities consumed by a business, such as electricity, water, and gas.

Administrative Expense

Costs related to the general management and administration of a company, not directly tied to any specific department or product.