Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college. She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from

her savings and buys a designer outfit and a fur coat for the interview. A week later, she returns the coat to the department store and says she would like her money back. The store is reluctant to take the items. What are Cheryl's rights? Explain your answer, citing relevant law.


The issue is whether the coat is a necessary item for Cheryl under the circumstances. Although it is true that Cheryl has the right to avoid the contract because she is a minor, she is responsible for the reasonable value of necessary items. Because she is employed as a model, the coat is arguably a necessary item for her, which would make her liable for the reasonable value of it.

Business

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Smith Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected initial cost of $1,000,000 . It has an expected life of six years, with no salvage value, and is expected to generate annual cost savings of $250,000 . Based on Smith Corporation's analysis, the project has a net present value of $57,625. Refer to Smith Corporation. What

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Business