Robert Harder, Jr

question 188

Essay

Robert Harder, Jr. was appointed the manager of Westbrook Properties, a recently formed company that manages residential rental properties. Maria Valdez is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. One of the largest expense categories is Travel and Entertainment. Mr. Harder believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Robert Harder, Sr. the elder Mr. Harder has set up Westbrook Properties in order to test his son's management skills before allowing him to manage a more lucrative commercial property business. Mr. Harder, Sr. provided the capital for Westbrook, and maintains close contact with the company. He allowed his son, however, to hire his own employees.
Mr. Harder has asked Ms. Valdez to name the Travel and Entertainment account Property Development. He hopes to deflect his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Ms. Valdez resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired.
Required:
1. Who are the stakeholders in this situation?
2. Should Ms. Valdez agree to the change in the Travel and Entertainment account to Property Development? Explain.

Identify and explain the concepts of breach of contract, including conditions and warranties.

Recognize the implications of anticipatory breaches and the rights of the non-breaching party.

Comprehend the role and limit of exemption clauses in contracts.

Understand the process and implications of ending a contract by agreement.

---

Definitions:

Selection Bias

A distortion of statistical analysis resulting from the method of collecting samples, leading to data that is not representative of the population being studied.

Magnitude Issue

Refers to the scale or size of an issue or problem, often implying its significance or impact in a particular context.

Momentum Effect

The tendency for securities that have performed well in the past to continue performing well in the future.

Martingale Effect

A theory in probability suggesting that past events do not influence future ones, often discussed in the context of gambling or investment strategies.