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Laminate LLC Agrees to Buy Factory Equipment from Metalwork Company

Question 52

Multiple Choice

Laminate LLC agrees to buy factory equipment from Metalwork Company on the seller's misrepresentation that it meets certain specifications. Metalwork assigns the right to payment on the deal to National Credit Corporation. When the buyer discovers the fraud, the firm returns the equipment and cancels their contract. Laminate


A) must pay the entire contract price to National Credit.
B) need not pay any of the contract price to National Credit.
C) must reimburse National Credit for costs with respect to the assignment.
D) must pay a prorated amount of the contract price to National Credit.

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