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Although Zlotnic Had Been in Business a Long Time, He

question 133

Multiple Choice

Although Zlotnic had been in business a long time, he had been forced to borrow heavily in the last few years. When his debt reached the limit of his line of credit, $100,000, the manager of the Regal Bank called him in for a talk. Subsequently, Zlotnic sold his house for $250,000 to the Johnsons. He contracted to buy another from the Scotts. From the proceeds he anticipated receiving from the Johnsons, he assigned $200,000 to the Scotts, the purchase price of Scott's house, and assigned $50,000 to the Regal Bank to reduce his debt. The assignment to the Scotts was in writing; the assignment to the bank was not. The Scotts gave written notice of the assignment to the Johnsons on March 1, the day the money was owed to Zlotnic. Johnson verified the assignment and paid out the $200,000 to the Scotts. On March 2, the Regal Bank gave written notice of its assignment to the Johnsons. Unfortunately, at that time only $45,000 was owing to Zlotnic because the Johnsons had paid $5,000 to the Canada Revenue Agency for Zlotnic. On these facts, which of the following is true?

Definitions:

Alcohol

A psychoactive substance commonly found in beverages such as beer, wine, and spirits, known for its effects on the central nervous system and potential for abuse and addiction.

Delinquent Behavior

Actions that go against societal norms or laws, typically referred to in the context of juvenile or youth misconduct.

Osteoporosis

A disorder in which bones become more porous, brittle, and subject to fracture, due to loss of calcium and other minerals.

Bone Tissue

A type of connective tissue that provides structural support to the body and serves as a storehouse for various minerals.