A. What is a third party beneficiary? b. Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary. Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain
a. A third party beneficiary is one who benefits from a promise made in a contract but who is not a party to the contract.
b. An intended beneficiary is a third party intended by the two contracting parties to receive a benefit from their contract. An intended beneficiary may be either a donee or a creditor beneficiary. A third party is a donee beneficiary if the promisee's purpose in bargaining for and obtaining the agreement with the promisor was to make a gift to the beneficiary. A creditor beneficiary is an intended beneficiary who is a creditor of the promisee. An incidental beneficiary is a third party whom the two parties to a contract did not intend to benefit by their contract, but who nevertheless will receive a benefit from the contract. An intended beneficiary, but not an incidental beneficiary, may sue to enforce rights under the contract.
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The possible consequences of a defective incorporation include which of the following?
a. The state may bring an action against the association for involuntary dissolution. b. A third party may assert that it is not liable to the association. c. The associates are held personally liable to a third party. d. All of these. e. None of these.
A wholesaler buys plastic lamps for $18 each and sells them for $30.60. What is the percent markup based on cost?
What will be an ideal response?
Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and Blockbuster's financial statement for Year 2 to calculate additional funds needed (AFN) in Year 3
Assume that sales in Year 3 will be $5.67336 billion. Assume a 0% dividend payout rate. Blockbuster Inc. Income Statement and Balance Sheet As of December 31, Year 2 ($000's) Revenue $ 5,157,600 COGS 2,420,700 SG&A 2,708,500 Dep. Exp. 246,600 EBIT -218,200 Int. Exp. 78,200 Income Before Tax -296,400 Income Taxes -56,100 Net Income -$ 240,300 ASSETS Total Current Assets 716,400 PP&E 909,000 Goodwill 6,127,000 Total Assets $ 7,752,400 LIABILITIES AND OWNERS EQUITY Total Current Liabilities 1,268,800 Long Term Debt 734,900 Total Liabilities $ 2,003,700 Owners Equity Common Stock 6,075,800 Retained Earnings -327,100 Total Stockholder Equity 5,748,700 Total Liabilities and Owners Equity $ 7,752,400 A) -$225.363 million B) $63.243 million C) $125.363 million D) $189.900 million E) $299.990 million
Proponents of no-fault automobile legislation argue that the tort-liability insurance system:
A) pays too much for big claims and too little for small claims B) pays claims too quickly and passes the increased cost on to motorists C) encourages bad driving and accidents D) is not efficient in returning dollars to automobile accident victims