Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?
A)Fred would win, as he did not ask Patty to quit her job.
B)Patty would win, as a contract was formed when Fred promised to pay her the support.
C)Fred would win, as family members cannot sue each other for breach of an oral promise.
D)Patty may win under the doctrine of promissory estoppel.
D
You might also like to view...
When Betty asked a sales representative to provide free shipping and a 40 percent reduction in price, the sales representative was stunned. Betty's partner then informed the representative that free shipping and a 10 percent reduction in price would be more reasonable. What negotiating strategy were Betty and her partner using?
What will be an ideal response?
Employees of a company that illegally disposes of hazardous waste without a proper permit may:
A. be held liable to a minimum of $25,000 for a first offense up to $150,000 per day and five years in prison for subsequent violations. B. not be held criminally liable for their acts unless they acted without the knowledge or approval of the corporation. C. be held criminally liable under Resource Conservation and Recovery Act (RCRA) for actions undertaken on behalf of the corporation. D. not be held criminally liable for their acts if their acts were undertaken on behalf of the corporation.
Uncertainties such as natural disasters are:
A. Contingent liabilities because they are future events arising from past transactions or events. B. Estimated liabilities because the amounts are uncertain. C. Disclosed because of their usefulness to financial statements. D. Reported in the same way as debt guarantees. E. Not contingent liabilities because they are future events not arising from past transactions or events.
Guidelines (rules-of-thumb) are general standards of comparison developed from:
A. Industry guidelines. B. Analysis of competitors. C. Dun and Bradstreet. D. Relations between financial items. E. Past experience.