If You Owe Mr

question 99

Multiple Choice

If you owe Mr. Storr $900 for goods received and Mr. Storr agrees to take $800 in full satisfaction of the debt, which of the following is true?

• A) At common law, such a one-sided promise is always binding and Mr. Storr could sue for the remaining $100.
• B) Many jurisdictions have passed legislation preventing Mr. Storr from suing you for the difference if he actually takes the $800.
• C) The issue of consideration is irrelevant when dealing with satisfaction of a debt.
• D) Even if you take the $800 to him, Mr. Storr can later sue you for the $100 on the principle of quantum meruit.
• E) Under these circumstances, you only have to pay a reasonable price for the goods.

Understand the concept of value consciousness among consumers.

Recognize how external economic forces like inflation and recession affect the overall economy and individual financial decisions.

Identify changes in consumer income levels and their impact on spending habits.

Understand the concept of discretionary income and its calculation.