Case summary: Construction company BH visited a hotel of company HIF in city T to estimate the cost of the renovation of the hotel. Company HIF offered company BH to renovate the hotel which will require ten years to recover the cost. Construction company BH bought the hotel, renovated it and operated it as a hotel HAI. Person GA, who was the executive of the company HIF decided to franchise to another local hotel. HIF asked major renovations to be done by hotel HAI that spent
To find : The purpose of punitive damages.
Case summary: Construction company BH visited a hotel of company HIF in city T to estimate the cost of renovation of the hotel. Company HIF offered company BH to renovate the hotel which will require ten years to recover the cost. Construction company BH bought the hotel, renovated it and operated it as a hotel HAI. GA who was the executive of HIF decided to franchise to another local hotel. HIF asked major renovations to be done by hotel HAI that spent
To find : The conduct of company HIF to warrant punitive award.
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- after a salesperson inspected a property and completed a brokerage engagement, the seller examined and signed that contract. And Georgia, if the salesperson sponsoring broker had mentioned in the salesperson written affiliation agreement that the salesperson could sign a listing agreement as the agent, because this person legally have done so? Yes, because the seller had already examined and signed the contract Yes, because the salesperson was the agent of the broker No, unless the salesperson had completed all the education courses required of a broker No, because a sponsoring broker was the sellers agentarrow_forwardCalculator A producer has taken an application for an individual Disability Income policy, collected a premium, and given the applicant a conditional receipt, which of CORRECT about this situation? OA COB. O C O D. Since the producer collected a premium when taking the application, the insured is guaranteed coverage as of the date of the application As soon as the insurance company receives the application and premium, it will sue a policy to the applicant with the date of receipt becoming the effective dotos of the policy. The insurance company will issue a policy to the applicant only if the company has sed the applicant a life polley on a standard beds within the previous 6 months The Insurance company will complete standard anderweiting procedures before making a decen about whether to insure the applicantarrow_forwardDue to uncertainty whether or not a new tax law is applicable to printing companies, ABC Printers submitted a legal query to the BIR on the issue. The BIR issued a ruling that printing companies are not covered by the new law. Relying on this ruling, ABC Printers did not pay the said tax. Subsequently however, the BIR reversed the ruling and issued a new one stating that the tax covers printing companies. Could the BIR assess ABC Printers for back taxes corresponding to the years before the new ruling? a) Yes, because taxation is the rule and exemption is the exception b) Yes, because taxes are the lifeblood of the government c) No, the BIR is not allowed to reverse its ruling d) No, reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer.arrow_forward
- What happens when homeowners owe more to subcontractors than the total price they were to pay the general contractor because the general contractor has not paid the subcontractors and the general contractor is no longer solvent? a. Courts and states have differing standards of equity applied in resolving these issues b. The homeowners cannot be liened by the subcontractors c. Homeowners are always exempt from paying more than they owed the general contractor d. The homeowners must pay the full amount due to all subcontractorsarrow_forwardhttps://www.insurancejournal.com/news/southeast/2022/09/26/686645.htm 1. Who was the plaintiff and who is the defendant in this case? What remedy(s) was the plaintiff asking for the court to give? 2. Which aspect of "capacity" was the plaintiff in this case claiming was missing? Explain why. 3. What did the court rule and why? PLEASE ANSWER ALL 3 QUESTIONS IN AT LEAST 3-4 SENTENCESarrow_forwardIllinois Accident and Health Producer General - Shayaan Shaikh Offer, acceptance, and consideration are necessary elements of: OA. OB. OC. OD. a warranty a representation a contract insurable interest Time Remaining Flag foarrow_forward
- 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. $46,400,000arrow_forwardA 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_forwardRelevant Costs and Quality Improvement; Chapter 12 Each year, Worrix Corporation manufactures and sells 3,000 premium-quality multimedia projectors at $12,000 per unit. At the currentproduction level, the firm’s manufacturing costs include variable costs of $2,500 per unit and annualfixed costs of $6,000,000. Selling, administrative, and other expenses (not including 15% sales commissions) are $10,000,000 per year.[LO 17-1, 17-2, 17-6][LO 17-2, 17-5, 17-6][LO 17-1, 17-217-5, 17-6]Final PDF to printerblo17029_ch17_713-774.indd 767 02/19/18 09:10 AMChapter 17 The Management and Control of Quality 767The new model, introduced a year ago, has experienced a flickering problem. On average, thefirm reworks 40% of the completed units and still has to repair under warranty 15% of the unitsshipped. The additional work required for rework and repair caused the firm to add additional capacity with annual fixed costs of $1,800,000. The variable costs per unit are $2,000 for rework and$2,500,…arrow_forward
- The Acme Electric Company worked day and night to develop a new current regulator designed to cut the electric power consumption in aluminum plants by 35%. They knew that, although the competition was fierce, their regulator could be produced more cheaply, was more reliable, and worked more efficiently than the competitors’ products. The owner, eager to capture the market, personally but somewhat hastily put together a 120-page proposal to the three major aluminum manufacturers, recommending that their regulators be installed at all company plants. She devoted the first 87 pages of the proposal to the mathematical theory and engineering design behind his new regulator, and the next 32 to descriptions of the new assembly line she planned to set up to produce regulators quickly. Buried in an appendix were the test results that compared her regulator’s performance with present models, and a poorly drawn graph showed how much the dollar savings would be. Acme Electric didn’t get the…arrow_forwardIn the following quote: "The BFOQ standard adopted in the statute is one of“ reasonable necessity, ”not reasonableness." What is the distinction between "reasonable necessity" and "reasonableness?"arrow_forwardchapter 4 6. A retailer in Atlanta ordered a shipment of shoes totaling $15,800 from a vendor in California. The shipping cost was $220. The shoes were shipped FOB Atlanta; charges reversed. The shoe vendor gave the retailer a 1% damage allowance. How much did the retailer pay the vendor for the shoes? (Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting 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