Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every pound that he loses within the next two years. Ewing agrees, diets and exercises, loses 154 pounds, and asks Dean for $1,540
Dean refuses to pay, say-ing that he does not remember the promise, but that even if he did make it, there was no consideration, and Ewing's improved health is a sufficient benefit for his effort and sacrifice. Ewing files a suit against Dean. In whose favor is the court likely to rule, and why?
A court is most likely to rule against Dean and in favor of Ewing. Generally, a waiver of a legal right in this case, the right to eat to obesity at the request of an-other party is sufficient consideration to support a promise.
Here, Ewing provided legally sufficient consideration by losing 154 pounds in weight over the stipulated two-year period. The promise in the question was the payment of $10 for every pound lost. It does not matter that the performance-the loss of weight-also benefited Ewing.
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materials per unit, as well as direct production labor per unit. A) Variable costs B) Switching costs C) Overhead costs D) Sunk costs
Tilly, the chief financial officer for USA Products Corporation, attempts to apply Christian precepts in making ethical decisions and in doing business. In applying duty-based ethical standards that are derived from a religious source, Tilly would consider the motive behind an act to be
A. irrelevant. B. the least important consideration. C. the most important consideration. D. the only consideration.
Once a dissenting shareholder elects appraisal rights, the shareholder loses his or her shareholder status.
Answer the following statement true (T) or false (F)
Bridget owns 200 shares of common stock of Jones Corporation. During the current year, Jones gives its shareholders the choice of receiving cash of $2 per share or one additional share of Jones common stock for each 5 shares of stock owned. The stock has a fair market value of $10 per share. Bridget chooses to take the additional shares of stock. How much income does Bridget have from the stock dividend?
A. $400 B. $200 C. $0 D. $1,000