Which of the Following Is True Regarding an Assignee's Acceptance

question 41

Multiple Choice

Which of the following is true regarding an assignee's acceptance of assigned rights?

• A) A creditor beneficiary must accept assignment of rights, but there is no requirement that a donee beneficiary do so.
• B) A donee beneficiary must accept assignment of rights, but there is no requirement that a creditor beneficiary do so.
• C) An assignee must agree to accept assigned rights, and there is a strict protocol for doing so.
• D) An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.
• E) An assignee may only decline an assignment if a delegation of duties is also involved.

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Definitions:

Long-Run Equilibrium

A situation in which, after all adjustments have been made, all firms in a perfectly competitive market earn zero economic profit and no firm has an incentive to change its output.

Market Price

The existing rate at which a product or service may be purchased or sold within a market environment.

Competitive Market

A market structure where many firms offer products or services that are similar, leading to high levels of competition.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit, leading to optimal distribution of resources.