April purchases $18,000 of goods from Lin on thirty days' credit,and Lin assigns the account to Indra.If April finds the goods defective and only worth $16,000:
A) she has no defense against full payment since the account was assigned.
B) she only needs to pay Indra $16,000 if Indra had notified her of the assignment.
C) Indra is entitled to the full $18,000 since she acquires rights greater than those of Lin,who assigned the contractual rights to payment.
D) she must pay $16,000 directly to Lin regardless of whether Indra notified her of the assignment.

Question

Quizplus · Accepted Answer

April is protected by the principle of breach of warranty and has the right to a common law claim. However, since the account was assigned, April must be notified of the assignment in order for Indra to collect payment. If Indra had not notified April of the assignment, April would only need to pay Lin the reduced amount of $16,000.

April Purchases $18,000 of Goods from Lin on Thirty Days