You Signed a One- Year Contract to Work on a Special

question 6

Multiple Choice

You signed a one- year contract to work on a special accounting team for a major retailer.Most of the team are young and inexperienced.Three months after the contract began your team leader resigned.The retailer was worried that you and your colleagues would become lazy and inefficient while a new leader was being found.It offered each of you a bonus payment of $50 per week to be punctual and hard working until the new leader started work.You all agreed.It took one month to find a new leader.The retailer is refusing to pay you the promised $200.Under common law,what legal rights,if any,do you have?

• A)None - because the promise was not put into writing.
• B)None - because you did not provide valuable consideration.You were only doing what you had already contracted to do.
• C)You are entitled to damages because you provided valuable consideration.It does not matter if the consideration did not have a clear market value.
• D)You are entitled to rescind the contract and claim damages because the retailers acted illegally by implying you were not hard working or punctual employees.

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Definitions:

FOB Destination

A shipping term that indicates the seller is responsible for the goods and shipping costs until the items reach the buyer's specified location.

FOB Shipping Point

A shipping term indicating that the buyer is responsible for the shipping costs and owns the goods in transit once they leave the seller's premises.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or completion, used in determining the value of inventory on hand.