B13 speedy assembly company promises its employees a

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B13. Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must a. do nothing. b. give the employees a 10-percent raise only at the end of the year. c. give the employees a 10-percent raise only if productivity increases. d. give the employees a 10-percent raise under any circumstances. ANSWER: A PAGE: 237 TYPE: N NAT: AACSB ReflectiveAICPA Legal
B14. Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words “payment in full.” Nat cashes the check. This discharges the entire debt
CHAPTER 12: CONSIDERATION 131 b. if the debt is past due. c. if the debt is unliquidated. d. under no circumstances. ANSWER: C PAGE: 238 TYPE: = NAT: AACSB ReflectiveAICPA Legal B15. George and Holly disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is PAGE: 238 TYPE: = NAT: AACSB ReflectiveAICPA Legal
Fact Pattern 12-B2 (Questions B16–B17 apply) Dag and Enita are in an auto accident. Dag offers Enita $2,000 if she prom- ises not to pursue her potential legal claim against him. Enita agrees. Later, Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury. B16. Refer to Fact Pattern 12-B2. The agreement between Dag and Enita is PAGE: 238 TYPE: N
NAT: AACSB ReflectiveAICPA Legal B17. Refer to Fact Pattern 12-B2. In Enita’s suit against Dag to recover her repair and medical expenses, Enita will most likely recover a. half the amount to pay those costs over what Dag already paid her. b. nothing. c. the estimated amount to pay those costs and any other liability.
132 TEST BANK B—UNIT THREE: CONTRACTS AND E-CONTRACTS d. the exact amount to pay those costs and no more. ANSWER: B PAGE: 238 TYPE: N NAT: AACSB ReflectiveAICPA Legal B18. Milo files a suit against National Corporation under the doctrine of promissory estoppel. Milo must show that PAGE: 239 TYPE: =
NAT: AACSB ReflectiveAICPA Legal
CHAPTER 12: CONSIDERATION 133

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