When John Comes Home from Work One Evening,he Finds That

question 42

Multiple Choice

When John comes home from work one evening,he finds that the leaves in his frontyard have been raked and put in bags.Later,a man comes to collect for the yard work done.John refuses to pay for the work since he has never seen the man before and did not hire him to do his yard work.Which of the following answers is most accurate?

• A)This is an implied, unilateral contract and he must pay the price requested by the man.
• B)John has to pay as this is an implied, bilateral executed contract.
• C)The court would order John to pay the reasonable value of the yard work because of the benefit conferred on him.
• D)John would not have to pay for the yard work as he did not have the opportunity to reject the offer.

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Definitions:

Replacement Period

The timeframe during which property must be replaced to defer recognition of gains for tax purposes under certain conditions.

Tax Due

The amount of tax liability one owes to a tax authority after all calculations are completed.

Wash Sale Rules

IRS regulations that disallow the claim of a loss on the sale of a security if a substantially identical security is purchased within a 30-day period before or after the sale.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.