Mesa County Contracts with New Construct Inc

question 3

Multiple Choice

Mesa County contracts with New Construct Inc. to build a courthouse. New Construct hires Odell to excavate the site. Odell's work damages adjacent properties. Mesa files a suit against the excavator, who argues that the county is not named in his contract with New Construct. Most likely, the court will hold that Odell is

• A)not liable because Mesa is not named in Odell's contract.
• B)not liable because Odell's contract was with New Construct, not Mesa.
• C)liable on the ground that Mesa is an incidental third-party beneficiary.
• D)liable on the ground that Mesa is an intended third-party beneficiary.

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Definitions:

Monopolist

A single seller in a market, who has significant control over the price and supply of a specific good or service.

Marginal Cost

The increase in total cost resulting from producing one additional unit of a good or service.

Price Discriminate

A pricing strategy where a seller charges different prices for the same product or service to different customers, based not on costs, but on willingness to pay.

Economic Profit

The separation between overall turnover and cumulative costs, incorporating both direct and indirect expenditures.