If Carol,acting as Agent for Steve,signs a Contract,she Alone Will

question 22

Multiple Choice

If Carol,acting as agent for Steve,signs a contract,she alone will be personally bound by it:

• A) if Steve's name or the fact that Carol is an agent is never mentioned and Steve does not carry out the contract.
• B) never;as an agent she is only a representative.
• C) if she decides to sue.
• D) if Steve is discovered by the third party to be the principal and the third party elects to hold him liable for performance.

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Definitions:

FICA-Medicare

The part of FICA taxes that is specifically allocated to fund Medicare, the U.S. government's health insurance program for the elderly and some disabled individuals.

Overtime

Additional hours worked by an employee beyond their standard working hours, often compensated at a higher rate.

FICA-OASDI Payable

The amount owed by employers and employees for Social Security taxes, as mandated by the Federal Insurance Contributions Act (FICA), specifically for Old Age, Survivors, and Disability Insurance (OASDI).

FICA-Medicare Payable

This refers to the portion of FICA taxes collected from employees' wages and salaries that is allocated to cover Medicare expenses, a mandatory financial obligation for employers.