The Case of Lucy V

question 53

Multiple Choice

The case of Lucy v. Zehmer, involving whether or not there was assent to a contract or whether allegations of joking prevented the formation of the contract, what did the court determine?

• A) The court ruled that the contract would not be enforced because one of the parties was subjectively joking and that both the Zehmers testified they were joking.
• B) The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that.
• C) The court ruled that the contract would not be enforced because the parties had been drinking and although they were not intoxicated, there was still no mutual assent.
• D) The court ruled that the agreement would be enforced because under the applicable standard, the words and acts, judged by a reasonable standard, manifested an intention to be bound.
• E) The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved.

Recognize the Student t-distribution's role and calculation of degrees of freedom in hypothesis testing.

Identify independent samples and their significance in statistical testing.

Calculate degree of freedom in pooled-variance t-test for equal and unequal sample sizes.

Understand the significance of pooled variance in estimating standard errors.

---

Definitions:

Process Costing System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Completion

The state of being finished or brought to the end, often referring to projects, construction, or specific tasks.

Cost Object

Any item for which a separate measurement of costs is desired, such as products, services, projects, or departments.

Process Costing

An accounting methodology used for homogeneous products, calculating the cost of each process or stage of production or manufacture.