Margaret Finds a Stray Cat and Takes It In

question 16

Multiple Choice

Margaret finds a stray cat and takes it in. The following day she is speaking to some friends and learns that Kelly, a woman who lives some distance away, has lost a cat. She goes around to the home of Kelly, leaves the cat in the yard and leaves a note for Kelly. The next day she gets a voice mail message from Kelly thanking her. A few days later Margaret sees a notice in which Kelly offers to pay $500 to anyone who returns her cat. Margaret who needs some cash returns to Kelly's home and demands the $500 reward. Which of the following is true?

• A) Kelly's notice is an invitation to treat.
• B) Margaret did no know of the offer before she returned the cat. So she could not have been accepting the offer when she returned the cat. No contract arose. There is thus no obligation on Kelly to pay the $500.
• C) By returning the cat, Margaret performed the contract and so has to be paid. Margaret's performance gives rise to a unilateral contract.
• D) Because Margaret did not demand the $500 when she returned the cat, she cannot go back and request it. The offer has lapsed.
• E) Kelly and Margaret have a bilateral contract.

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Definitions:

Days' Sales in Inventory

A financial metric indicating the average number of days it takes for a company to turn its inventory into sales.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales or revenue.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating the efficiency of inventory management.