Wanting to Save the Money She Would Have to Pay

question 19

Multiple Choice

Wanting to save the money she would have to pay for a commission,Marsha asks her friend Howard to check on the Internet and see if he can find a five-day cruise to the Bahamas for under $400 and if he does,to book it for her.He agrees,but later tells her he doesn't have time to check for her.Howard is:

• A) liable to Marsha for damages if she misses an opportunity to go on such a cruise because Howard terminated the agreement when he did not have the power to do so.
• B) not liable to Marsha because he was a gratuitous agent and had both the power and the right to quit any time he wanted.
• C) liable to Marsha for damages because Howard terminated the agreement without the right to do so.
• D) liable to Marsha for breach of the duty to cooperate.

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Definitions:

Units

A measure of quantity used to describe the amount of product, material, or service.

Sold

The past tense of sell; refers to the action of transferring ownership of a good or service to a buyer in exchange for money or other compensation.

Variable Cost

Costs that vary directly with the level of production or service volume, such as materials and labor.

Units

In the context of production, refers to individual items or quantities that are counted or measured.