Jamie is building a house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000 . When Earnie starts digging,
he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000 . If Earnie sues, the most likely result would be
a. Jamie wins, as Earnie was under a preexisting duty to dig the basement.
b. Earnie wins as this modification is governed by the UCC and consideration is not required to enforce a modification of the agreement.
c. Jamie wins as Earnie was not acting in good faith and just wanted to put Jamie in a situation where she didn't have a choice but to agree to more money.
d. Earnie wins, as the modification was due to unforeseen difficulties.
d
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Which of the following is true about noncumulative quantity discounts?
A) They encourage large single orders. B) They encourage a strong relationship between buyer and seller. C) They are based on a total quantity purchased within a set time period. D) They typically involve giving the buyer a credit to use against future orders. E) They encourage small, regularly spaced orders.
The significance of oil's peak production is that:
A. oil companies will have to find new revenue services. B. it serves to spread the word that fossil fuels will deplete. C. China and India will need to modify their fuel consumption patterns with peak oil. D. it lets us know how much time we have to make the adjustment to renewables.
Barsness Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for November. Fixed Element per MonthVariable Element per Well ServicedActual Total for NovemberRevenue $4,400$190,100Employee salaries and wages$56,800 $1,100$103,400Servicing materials $700$29,800Other expenses$34,800 $35,300When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actually serviced during November.The amount shown for "Other expenses" in the planning budget for November would have been closest to:
A. $35,050 B. $34,800 C. $32,016 D. $35,300
Which of the following is a difference between the EOQ and the EPQ models?
A. In the EOQ model, additional inventory is received all at once, but not in the EPQ model. B. In the EOQ model, there are quantity discounts available, but not in the EPQ model. C. In the EOQ model, lead time is known, but not in the EPQ model. D. In the EOQ model, shortages are allowed, but not in the EPQ model.