Tim Contracts with Home Dairy to Deliver a Bottle of Milk

question 39

Multiple Choice

Tim contracts with Home Dairy to deliver a bottle of milk to Tim's house every day.Home Dairy assigns Tim's contract to Mother Dairy.Tim is notified of the change and continues to get his daily bottle of milk.His contract is now with the new dairy.Mother Dairy is the:

• A) assignee.
• B) factor.
• C) holder in due course.
• D) assignor.

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Definitions:

Debtor

A person or entity that owes money to another individual or entity, often as a result of borrowing.

UCC's Classification

A system of categorizing and standardizing commercial transactions and instruments, established under the Uniform Commercial Code.

Perfect

Complete and absolute, often used in legal contexts to describe a state in which rights or securities are fully enforceable.

Security Interest

A legal claim or right granted by a borrower to a lender over the borrower's assets as collateral for a loan.