Young Bobby Opened a Lemonade Stand in His Front Yard

question 61

Multiple Choice

Young Bobby opened a lemonade stand in his front yard. He used $4 worth of lemons, sugar, and cups, and paid his little sister $1 to operate the stand while he played. She sold 7 cups of lemonade for $1 each. What was the surplus value?

• A) $4
• B) $1
• C) $7
• D) $2

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Definitions:

Main-Purpose Rule

A legal principle that if the main purpose of a guarantor to sign a surety agreement is to secure a personal benefit, the agreement does not have to be in writing to be enforceable.

Secondary Obligation

An obligation that arises indirectly or as a result of another primary obligation, often in legal or financial contexts.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party against whom enforcement is sought, to be legally enforceable.