Fact Pattern 10-1 Lulene Makes the Best Lemon Meringue Pies in Mississippi. So

question 252

Multiple Choice

Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Suppose that when discussing the deal, Lulene said to Ellen, "you know, I can only hold this offer open to you until Wednesday." On Thursday, Ellen calls Lulene and tells her she would like the pies. In this case the offer was terminated:

• A) by illegality
• B) by lapse of time
• C) by conditionality
• D) by revocation
• E) by counteroffer

Describe the trends and risks associated with rogue social media accounts.

Understand the ethical and legal implications of automating social media interactions.

Comprehend the regulatory focus on influencer marketing and the need for disclosure in sponsored content.

Understand the importance of social media policies for brands and their impact on employee behavior.

---

Definitions:

Material Price Variance

The difference between the actual cost of materials purchased for production and the standard cost, indicating how much more or less was spent than expected.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.

Static Budget

A financial plan that does not change over the period for which it is set, regardless of any changes in activity levels.

Standard Cost

A predetermined cost of manufacturing a product or performing a service under normal conditions, used for budgeting and performance evaluation.