Susan is planning to incorporate a new landscaping company, "Evergreen and Growin'." She has held herself out as an agent for Evergreen and has contracted to buy a truck, tools, fertilizer, and seed and also has entered into a lease on behalf of Evergreen for an office. When she fails to get the loan from the bank, she cannot start the business, so she cancels all the contracts. What are the
consequences?
A) Susan can cancel all the contracts with no personal liability if she told them she was acting as an agent and expressly warranted that she would not be responsible.
B) Susan may be held personally liable on the contracts because she misrepresented to third parties that she had authority to make contracts on behalf of a non-existent corporation.
C) Since the company never existed, she gave no implied warranty.
D) Susan will be held liable for the contracts only if she ever gets the loan.
B
You might also like to view...
On December 31, Strike Company sold one of its batting cages for $20,000 . The equipment had an initial cost of$310,000 and had accumulated depreciation of $260,000 . Depreciation has been recorded up to the end of theyear. What is the amount of the gain or loss on this transaction?
a. loss of $30,000 b. gain of $30,000 c. loss of $20,000 d. gain of $20,000
Holistic marketing incorporates ________ marketing, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities
A) internal B) cultural C) social responsibility D) relationship E) integrated
The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Net Income$52,500?Retained earnings 135,000?Dividends 16,000?
A. $135,000. B. $66,500. C. $171,500. D. $203,500. E. $98,500.
When public relations shifts from producing communications (process) to focusing on results and consequences (impact), which of the following is/are true?
A. The focus is on "Management by Objectives." B. The function deals with "nonprogrammed" decision making. C. The staff is held accountable as part of the management team. D. The practitioners play a "strategic" role. E. All of the above.