Michael Is an Employee of StayHere Hotels,Inc

question 22

Multiple Choice

Michael is an employee of StayHere Hotels,Inc.in Washington,DC.On his vacation,Michael travels to San Francisco and stays at a StayHere Hotel for six nights free of charge.The regular rate for a hotel room at StayHere in San Francisco is $300 a night.His ability to stay in the hotel without charge is based on the availability of empty rooms.How much income must Michael report due to the use of the San Francisco hotel room?

• A)$0
• B)$300
• C)$360
• D)$1,800

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Definitions:

Detrimental Reliance

A legal principle where a party suffers harm by relying on a misleading statement or promise of another.

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.

Enforceable Promise

A commitment in a contract that is legally binding and can be upheld in court.

Substituted Contract

An agreement made to replace a prior contract, which was agreed upon by all original parties and extinguishes the obligations of the first agreement.