The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 14, Problem 1CT
Summary Introduction
Case summary: A person J agreed to buy a freezer costing $900. After-tax and additional charges, the cost got raised to $1,234.80. Later, the person J filed a suit against the seller in the state court to declare the purchase contract as unconscionable.
To Find: The reason behind the knowledge of the seller regarding the buyer’s limited resource that supports the finding that the contract was unconscionable.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Determine the delictual liability from this scenario?
Tree Combined School has hired a flower planting contractor to plant flowers in the school premises. The contractor came with two trucks to supply fertile soil and flowers. The deputy principal requested all educators to supervise learners during break to avoid injury. On Monday educators followed their ground duties roster very well. On Tuesday one of the educators came with a birthday cake and invited all educators to come and enjoy his birthday during break. He told educators that they should not be afraid to leave learners alone because they have a right to eat during break. While all educators (including those that were on duty) were busy enjoying themselves, one of the groundsmen came running to the deputy principal’s office to inform him that one of the grade 2 learners has been knocked down by a truck.
For the past several years, Kent Corporation had achieved remarkable success in winning R&D contracts. The customers were pleased with the analytical capabilities of the R&D staff at Kent Corporation. Theoretical and experimental results were usually within 95 percent agreement. But many customers still felt that 95 percent was too low. They wanted 98–99 percent. In 1989, Kent updated their computer facility by purchasing a large computer. The increased performance with the new computer encouraged the R&D group to attempt to convert from two-dimensional to three dimensional solutions to their theoretical problems. Almost everyone except the director of R&D thought that this would give better comparison between experimental and theoretical data. Kent Corporation had tried to develop the computer program for three dimensional solutions with their own internal R&D programs, but the cost was too great. Finally, after a year of writing proposals, Kent Corporation…
A 71% leased 71,000 square foot office building in San Diego was acquired in February 2017 by a California LLC for $39 million. The property’s building/land ratio was determined to be 90/10 at the time of acquisition by the LLC’s accountant. The property was sold in February 2023 for $80 million after leasing the building to 92% occupancy. Tax deductible selling costs included a brokerage fee that was 4% of the sale price plus legal fees and other closing costs of $200,000. What was the total amount of the capital gain plus depreciation recapture upon which tax must be paid on the sale?
a. $37,600,000
b. $43,000,000
c.. $41,000,000
d. $46,400,000
Chapter 14 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- A 71% leased 71,000 square foot office building in San Diego was acquired in February 2017 by a California LLC for $39 million. The property’s building/land ratio was determined to be 90/10 at the time of acquisition by the LLC’s accountant. The property was sold in February 2023 for $80 million after leasing the building to 92% occupancy. Tax deductible selling costs included a brokerage fee that was 4% of the sale price plus legal fees and other closing costs of $200,000. What was the total amount of the capital gain plus depreciation recapture upon which tax must be paid on the sale? $37,600,000 $43,000,000 $41,000,000 $46,400,000arrow_forward18) The aggrieved party can claim only the damages in case of breach of warranty. a) True b) False 19) A buyer has right to examine goods for the purpose of ascertaining whether they are in conformity with the contract. a) True b) False 20) In respect of hire purchase, the owner must serve the hirer and the guarantors a copy of the hire purchase agreement within 14 days after it is made a) True b) False 21) In hire purchase, the owner must obtain from the hirer a deposit in cash or in goods or partly in cash and partly in goods, to a value not less than one-fifth of the cash price of the goods. a) True b) Falsearrow_forwardWhich of the following scenarios is a permissible fee splitting for settlement sarvicen? A) Two or more persons split a fee for settlement services, any portion of which is unearned B) A payment pursuant to cooperative brokerage and referral arrangements or agreements between real estate agents and real estate brokers C) One service provider charges the consumer a fee where no, nominal or duplicative work is done, or the fee is in excess of the reasonable value of goods or facilities provided or the services actually performedarrow_forward
- With the aid of relevant examples write short notes on any 5 remedies available for breach of contract.arrow_forwardContrast with examples affirmative warranties from promissory warranties.arrow_forward19) The Elle Corporation manufactures fingernail polish. Suzy buys a container of Elle's fingernail polish, applies it to her nails, and suffers a severe allergic reaction. She sues Elle under the implied warranty of merchantability, The test for determining whether Suzy will recover is whether: A) the nail polish she bought was suitable for the needs of the average consumer. B) the nail polish she bought properly performed its function of coloring one's nails. C) such a reaction in an appreciable number of consumers was reasonably foreseeable. D) the ingredient causing the reaction was foreign to the nail polish or natural to it. nating one model, Bobby noticesarrow_forward
- 16) Goods means every kind of immovable property other than actionable claims and money. a) True b) False 17) Faiz meets Farhan, a car dealer and tells him that he wants a car that can move 20km/liter. Farhan promotes one of the cars in the showroom and says that it suits the purpose. Faiz buys the car by relying on Farhan's representation. Subsequently Faiz finds that the car can move 15km/liter. The above situation is an example of breach of warranty. a) True b) Falsearrow_forwardIf a price is not determined by the parties in a contract of sale, the buyer is bound to pay________________. Select one: a. the price which the buyer thinks is reasonable b. the price to be determined by a third independent person c. the price demanded by the seller d. a reasonable pricearrow_forward1. The men's department had sales of $60,000 for December. During the month, the buyer reduced prices of 38 suits from $695 to $445 and that of 20 suits from $550 to $287. What was the markdown percent for the month? Present your answer with a %-sign, rounded to two decimal places (i.e. 19.47%). 2. A giftware buyer received 36 crystal clocks that retailed for $79 each. Five clocks sold at that price before a special sales event. The remaining 31 clocks were marked down to $58. Nineteen of the clocks were sold during the sale, and the remaining clocks were marked to the original $79 price. The remaining clocks were eventually sold at full price. Calculate the net markdown percent. Present your answer with a percent sign, rounded to two decimal places (i.e. 19.64%). 3. Alma, a sales associate, receives a 20% employee discount. Because she was the top sales associate of the month, Alma was given an additional 10% discount for the month of March. During March, Alma purchased a…arrow_forward
- Seller entered into a contract to sell goods at a contract price of $2,000. At the delivery date, the seller refuses to deliver the goods. If the buyer covers on the date delivery is supposed to occur, the cost to acquire alternate goods, also the fair market value, is $2,200. One week later the fair market value is $2,500. Discuss the remedies available to the buyer.arrow_forwardThe children's buyer licensed tee shirt order was invoiced on June 25 for $10,600. The terms on the order were 8/10 EOM. How much should the buyer pay if the order is paid on time by the due date?arrow_forwardDr. Ira, a dermatologist, promised to treat for Mek Sya’s skin problem until cured. Mek Sya did not give any consideration but Mek Sya’s daughter, Mek Con had given a diamond necklace to Dr. Ira. Mek Con had asked Dr. Ira to fulfil her promise to Mek Sya. However, Dr. Ira failed to do so. Can Mek Sya enforce Dr. Ira’s promise? Discuss by referring to the law of contract.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education