[Skyrocketing Rent] Ethan leased space for his health food store from Simone. After a few years, Simone decided to sell the building in which the health food store was located to Mack. Simone told Ethan that the lease would be terminated and that whether he could stay or not depended on what he could work out with Mack. Mack told Ethan that he could stay only if he paid double the amount of rent he had been paying to Simone and that if Ethan complained, the rent would go even higher. Ethan told Mack that Simone had no right to make any changes and that he had the absolute right to continue paying the same set amount to Simone until the lease expired. The lease did not address transfers.Which statement is true regarding whether Mack has the right to raise the rent?

A. Mack could raise the rent by only a rate of 10% per year.
B. Mack had the right to double the rent, but that was the maximum amount that he could raise it.
C. Mack could raise the rent as high as he wanted, and Ethan could either pay it or move.
D. Mack did not have the right to raise the rent during the term of the lease, although Simone had the right to sell the property.
E. Mack may not raise the rent because Simone had no right to sell the property in the first place.


Answer: D

Business

You might also like to view...

On the statement of cash flows, payment of dividends is treated as a/an

a. investing activity. b. financing activity. c. outflow of cash from operations. d. expenditure not requiring the use of cash. e. none of the above.

Business

A transitive verb is a verb that has an object or a receiver of the verb's action

Indicate whether the statement is true or false

Business

A rule that establishes maximum length of work shifts for air traffic controllers demonstrates an agency imposing a regulation

a. True b. False Indicate whether the statement is true or false

Business

Regarding employment benefits, the general rule is that:

a. employers are legally required to provide employment benefits in the form of basic health care, vacation pay, and pension or profit sharing plans b. employers are legally required to provide basic health care, but no other benefits, although they may do so voluntarily c. only employers with 50 or more employees are legally required to provide basic health care, but no other benefits, although they may do so voluntarily d. none of these

Business