Ted Rented a Store in a Mall Owned by Oscar

question 28

Essay

Ted rented a store in a mall owned by Oscar. During the two busiest months of the year, renovations to the stores on either side of Ted's caused him to lose a great deal of money. A clause in the commercial lease for the store says that the mall owner is not liable for any losses caused by repairs or renovations, but Oscar agreed to allow Ted to pay only two-thirds of his rent for the following six months because Ted was now in financial difficulties since he had not made the profits he relied on to carry him through the slow period. Three months later, Oscar lost a lot of money speculating in the commodities market and he told Ted that he needed Ted to revert to paying the full amount of the rent under the lease. Ted objected having put all the money he would have used to pay the rent in full into an advertising campaign to try to make up his losses. Oscar got angry and demanded that Ted pay the back rent also. Ted will go bankrupt if he has to do this and he comes to you to ask if he must do it. What will you tell Ted about Oscar's rights and what Ted can do about the situation?

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Definitions:

Population Proportions

The fraction of individuals in a population that belong to a specified category or group.

Interval Estimate

An estimate of a population parameter that is given as a range of values, offering a level of confidence in the estimate's accuracy.

Hypotheses Testing

A method of statistical inference that is used to decide whether the data at hand sufficiently support a particular hypothesis.

Senatorial Election

A political process through which individuals are elected to represent a state or equivalent entity in the senate.