Reference - Book Payment

question 52

Multiple Choice

Reference - Book Payment. Molly and Pat signed a contract providing that "Pat will furnish the correct used business law book for use in Molly's business law class; and in return on August 15, 2011, Molly promises to pay Pat $50 for the book." Molly took the book and planned to pay Pat. Meanwhile, Pat properly assigned the contract Molly had signed to Jack. When Molly went to class, however, she discovered that the book was the incorrect book. When Jack asked Molly for payment, Molly refused. Molly told Jack that the book was useless to her and that she was not paying either him or Pat anything for it. Jack told Molly that he had an enforceable assignment in the form of a negotiable instrument and that he could collect regardless of whether the book was useless. Molly did not believe him. Continuing with her attempt to save money on books, Molly agreed to buy Tim's U.S. history book for $40. She had an oral agreement with Tim that he would give her the book and that she would pay him in three days. This time Molly got the right book. Tim, in writing, properly assigned the right to the $40 payment to Richard. Richard asked Molly for the money. Molly admitted her agreement with Tim but told Richard that she was not going to pay him because he did not have a negotiable instrument. Molly also purchased a communications book from Sam promising in writing to give him in return the next day, to his order, a used DVD player she owned. Which of the following is true regarding Molly's assertion that Richard did not have a negotiable instrument?

• A) Molly is incorrect, and the document by which Tim assigned the right to Richard is a negotiable instrument in regard to her duty to pay.
• B) Molly is correct because her agreement with Tim was not in a writing containing words of negotiability or words indicating the presence of a bearer instrument.
• C) Molly is correct because Richard was not a party to the original contract.
• D) Molly is incorrect because her admission establishes the existence of a negotiable instrument between her and Tim that could be assigned to Richard.
• E) Molly is correct because she did not immediately transfer funds to Tim and also because her agreement with Tim was not in a writing containing words of negotiability or words indicating the presence of a bearer instrument.

Understand the relationship between learning disabilities and intelligence.

Recognize logical fallacies in arguments and reasoning.

Develop and enhance critical thinking and problem-solving skills.

Understand the concept of compound interest and its calculations.

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Definitions:

Rehearsal Systems

Cognitive processes used to remember information through repetition.

Central Executive

A component of working memory model that coordinates the activities of the phonological loop and the visuospatial sketchpad by managing cognitive processes like attention and problem-solving.

Permanent Memory

A long-term memory that can store information indefinitely.

Phonological Loop

A component of working memory responsible for the storage and manipulation of verbal and auditory information.