Rorzex, Inc

question 6

Multiple Choice

Rorzex, Inc. entered into a contract with Denzil under the terms of which Denzil would receive $20,000 if he stole trade secrets from the leading competitor of Rorzex. Denzil performed his end of the agreement by delivering the trade secrets. Rorzex now refuses to pay Denzil for his services. Denzil:

• A) may recover based upon the express contract of the parties.
• B) may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of Rorzex.
• C) will be unable to recover, because this is an illegal contract.
• D) will be able to recover based upon promissory estoppel, because he has detrimentally relied upon the promises made by Rorzex.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an essential part of the finished product.

Direct Labor

The workforce directly involved in producing goods or delivering services, whose wages are considered part of manufacturing costs.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to, utilities, depreciation, and salaries of non-direct labor.

Inventoriable Costs

Direct costs associated with the acquisition or production of goods that are capitalized as inventory and recognized as cost of goods sold when the inventory is sold.