Use These Fact Situations to Answer the Related Questions That

question 26

Multiple Choice

Use these fact situations to answer the related questions that follow. Fact Situation 1:
John is the 20-year-old nephew of Mary,who is 80 years of age and unable to get around or do things herself.Mary owns two properties in Toronto: 121 Thornton Lane and 122 Thornton Lane.Mary,who lives at 121 Thornton Lane,orally agrees with John that if he is good to her and does whatever services for her that she asks him to do from time to time during the rest of her life,she will leave John 121 Thornton Lane.John does not live with Mary,but does a number of things that Mary asks him to do,including taking her on trips,doing some errands,and also doing some odd jobs for both properties over the course of a year,after which Mary dies without leaving John 121 Thornton Lane.Now John sues her estate to get the house.
Fact Situation 2:
In 1921 Gus met Dick,and in the spring of 1922 Gus went to work for Dick as a farm labourer.For the first two years after that,Gus was paid $50.00 a month,plus room and board and meals.In 1924,Dick was in an accident and became disabled.Although Dick could not pay Gus wages,he promised to leave Gus his farm after he died if Gus stayed and worked the land.From 1924 on,Gus,who often considered leaving Dick's farm and had ample opportunity to do so,stayed and worked the farm on Dick's continued promise that if he stayed and worked the farm,the farm would be his after Dick's death.During this time Gus planted the fields,decided on what crops to plant,did repairs to Dick's house,and on Dick's behalf purchased livestock and then took care of it.Dick died in 1930 before he had a chance to make a will leaving Gus the land.
In Fact Situation 1,if John sues Mary's estate to get the house,

• A)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties are immaterial because the contract was one of services for an indefinite period,so he will succeed.
• B)the agreement between John and Mary is one for a period of a year and John cannot succeed.
• C)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties come within the doctrine of part performance and John will succeed.
• D)the agreement between John and Mary contains all the essential terms necessary to create a binding agreement that does not come within the Statute of Frauds,so John will succeed.
• E)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties do not come within the doctrine of part performance and John will not succeed.

Comprehend the relationship between process performance and the uniformity indicated by control charts.

Grasp the concept of nominal specifications and their role in quality control.

Identify the types of control charts used for different types of data and their applications.

Understand the relationship between assets, liabilities, and equity in the accounting equation.

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Definitions:

Balance Sheet Hedge

A financial strategy used to reduce the risk of currency fluctuations affecting the value of assets and liabilities reported in a company's balance sheet.

Exchange Rate Fluctuations

Variations in the value of one currency relative to another, affecting international trade and investments.

Global Companies

Enterprises that operate in multiple countries around the world, often focusing on international sales, partnerships, and supply chains.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining the size and frequency of dividend payments.