Lydia's Father Has Named Lydia in His Will as the Inheritor

question 48

Multiple Choice

Lydia's father has named Lydia in his will as the inheritor of his farm. He has also named her as a beneficiary in his insurance policy. Lydia is:

• A) a donee beneficiary.
• B) an incidental beneficiary.
• C) the assignee by novation.
• D) a creditor beneficiary.

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Definitions:

Exclusive Contracts

Agreements that restrict parties from engaging in similar agreements with others, often found in employment or distribution deals in various industries.

Economy of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit falls as production scales up.

Sound-on-film

A technology that synchronizes audio with moving pictures, allowing for sound to be recorded onto the same film strip as the image.

Movietone

Movietone refers to an early sound film system that combined motion pictures with synchronized recorded sound.