Clint Contests the Amount of a Bill He Received from Car

question 47

Multiple Choice

Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:

• A) is not valid consideration.
• B) is not a legal detriment to Clint if his contentions were not made in good faith.
• C) is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts.
• D) does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

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Definitions:

Fixed Asset Turnover Ratio

The number of sales dollars earned per dollar of fixed assets, computed by dividing sales by the average book value of fixed assets.

Labor Intensive

A process or industry that requires a large amount of human labor compared to capital investment.

Fixed Asset Turnover Ratio

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, calculated by dividing net sales by the net value of fixed assets.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.