Motors Repair Company contracts to sell a car to Nikki for $3,500. Nikki gives Motors Repair a worth¬less check for the price. Nikki assigns her right to the car to Opie. If Motors Repair refuses to deliver the car to Opie and Opie sues, can Motors Repair raise Nikki's fraud as a defense against deliv¬ery of the car to Opie? Explain
Yes. An assignee takes only those rights that the assignor originally had, and those rights are subject to any defenses that the obli¬gor has against the assignor. In this problem, Motors Repair is the obligor, Nikki is the assignor, and Opie is the assignee. Nikki's delivery of a worthless check to Motors Repair means that Motors Repair has a right to refuse to deliver the car to Nikki. Motors Repair can also refuse to deliver the car to Opie, for the same reason.
You might also like to view...
Andrei was accused of stealing office supplies and fired immediately. It would appear that Andrei’s right to _________ was violated.
A. free consent B. due process C. life and safety D. freedom of conscience E. privacy
The absolute value of the difference between the point estimate and the population parameter it estimates is the _____ error.
A. standard B. sampling C. efficient D. finite
Which of the following must be present in order for a business to successfully rely on the
defence of voluntary assumption of risk? A) the exact nature of the risk must be clear to the customer B) the activity being engaged in by the customer must not be high risk C) the customer must have paid adequate consideration for participating in the activity D) the risk must be one which other customers have been willing to assume E) All of the above
When using the stepping-stone method, the improvement index for an unused cell equals the shipping cost associated with that cell
Indicate whether the statement is true or false