Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oneal carries on a wholesale toy distribution business. He sells to his customers on credit, giving them 30 days to pay. Oneal is negotiating for

image text in transcribed
Oneal carries on a wholesale toy distribution business. He sells to his customers on credit, giving them 30 days to pay. Oneal is negotiating for an operating line of credit and his bank has asked him to assign his receivables to them as security for his obligations under the line of credit. Assuming that Oneal agrees to the assignment, which of the following is TRUE? Select one: OA. Oneal will be permitted to continue to collect his own receivables and carry on his business as usual, unless he defaults on his loan and the bank exercises its rights pursuant to the assignment agreement. OB. If Oneal's receivables are more than the amount of the loan, the bank will be entitled to the surplus. OC. If Oneal defaults under the operating line of credit, his customers will not have to pay what they owe him. OD. Oneal's customers will not be happy because they will have to pay their accounts to the bank. OE. Oneal will not have to collect his receivables himself. Next page ENG 9:25 AM

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tort Law And Alternatives Cases And Materials

Authors: Marc Franklin, Robert Rabin, Michael Green, Mark Geistfeld, Nora Engstrom

11th Edition

164708489X, 978-1647084899

More Books

Students also viewed these Law questions

Question

Describe major criticisms of Freuds system of thought.

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago