McCall and Teresa Enter into a Contract for the Distribution

question 71

Multiple Choice

McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is

• A)a delegation.
• B)an assignment.
• C)a void contract.
• D)prohibited by law.

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Definitions:

Accrue Payroll

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Warranty Costs

Expenses incurred by a company to repair, replace, or refund products that are found to be defective within a warranty period.

Two-Year Warranty

A guarantee provided by a seller or manufacturer to repair or replace defective goods for two years after purchase.

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