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MMLU-Pro / 935 / An inventor developed a prototype of an automobile. engine that she believed was…

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question

An inventor developed a prototype of an automobile. engine that she believed was going to revolutionize the automotive industry because of the engine's fuel-efficient properties. As a wedding present to the inventor's brother, the inventor wrote on a wedding card she gave to her brother:"I hereby assign to you 20 percent of the net profits realized from the production and distribution of my automobile engine within the first year of production. "The inventor then borrowed money from creditors and began to promote her automobile engine. She was contacted by a major automobile manufacturer about the possibility of using the engine in a new line of cars the manufacturer intended to release during the next calendar year. While on her way to meet with the representatives of the manufacturer, the inventor was killed in an automobile collision. The manufacturer then contracted with the executor of the inventor's estate to license the use of the automobile engine design for a 10-year period for $500,000, payable to the estate. The creditors from whom the inventor borrowed the money to promote her automobile engine have now attached the proceeds from the licensing agreement, which have so far been paid into the estate. The brother also asserts his assigned rights to a share of the proceeds. In subsequent actions by the creditors and the brother, the court will most probably hold in favor of

category

law

options

  1. the creditors, because the agreement with the manufacturer was made after the assignment to the brother.
  2. the brother, because the inventor's assignment was recorded in a written document.
  3. the brother, because the assignment was given as a gift and thus cannot be contested by the creditors.
  4. the creditors, because the inventor's assignment to the brother was unenforceable as a defective assignment.
  5. the creditors, because the rights of creditors/lienors are superior to those of a donee beneficiary.
  6. the creditors, because the inventor's assignment to the brother was not legally binding.
  7. the brother, because the inventor's assignment to him was made prior to the agreement with the manufacturer.
  8. the brother, because any proceeds of the assigned right received by the assignor thereafter are held in constructive trust for the assignee.
  9. the brother, because the rights of an assignee are superior to a lien against the assignor subsequently obtained by legallequitable proceedings.
  10. the creditors, because they provided financial support to the inventor's project.

src

ori_mmlu-professional_law

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