Francesca, who is divorced, owns a house. She has no reasonable expectation of benefit from the life of Gordo, her ex-spouse, but she applies for insur¬ance on his life anyway. She also obtains a fire insurance policy on the house, which she later
sells. Five years later, Gordo dies and the house is destroyed in a fire. Can Francescaobtain payment on either the death of Gordoor the loss of the house? Explain.
Francescacannot obtain payment on the death of Gordoor for the loss of the house.
To obtain insurance, one must have a sufficiently sub¬stantial interest in whatever is to be insured. One has an insurable inter¬est in property if one would suffer a pe¬cuniary loss from its destruc¬tion. This interest in property must exist when the loss occurs. To obtain in¬sur¬ance on another's life, one must have a reasonable expectation of benefit from the continued life of the other. The benefit may be founded on a relation¬ship, but "ex-spouse" alone is not such a relationship. An inter¬est in someone's life must exist when the policy is ob¬tained.
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A modified version of the right to a job claims that the government should be the last resort for people who are able to work but unable to find jobs in the private sector.
Answer the following statement true (T) or false (F)
Diane bought an action figure for David, her 3-year-old son, from Terrence's Toy Shop. The packaging did not mention that the toy contained small detachable parts. David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital. On which of the following product liability charges can Diane sue Terrence's Toy Shop for damages?
A) negligence B) misrepresentation C) fraud D) nuisance
Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause?
A) Void as an illegal primary restraint B) Valid as a reasonable restraint on trade C) An unenforceable restraint of trade contrary to public policy D) Binding as fair protection
Which of the following statements best describes the reporting process for profit seeking and governmental entities?
A. In profit-seeking enterprises the measurement focus is on the flow of current financial resources, whereas the focus for government funds is on all economic resources. B. In profit-seeking enterprises the measurement focus is on the flow of all economic resources of the firm, whereas the focus for governmental funds is on current financial resources. C. Both profit-seeking enterprises and governmental entities have an objective to measure profitability. D. Both profit-seeking enterprises and governmental entities use the accrual or cash basis of accounting to record and report transactions.