Roberts Leased a Duplex from Hughes

question 33

Essay

Roberts leased a duplex from Hughes. Later, without Hughes' knowledge, Roberts sublet half of the duplex to Carrera. Carrera did not take proper care of the premises and her part of the duplex was substantially damaged as a result of her negligent use and abuse. Upon discovering the situation, Hughes notified Roberts that he was holding him responsible for any and all damages to Carrera's portion of the duplex, and that Roberts was to bear the costs of returning the premises to the original state of repair. Roberts replied that he had sublet to Carrera in good faith, had no further dealings with Carrera after the sublet agreement, had no knowledge of negligence, and could not be held liable for damages caused by another. Can Roberts be held liable?

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Definitions:

Marginal Cost Curve

A graphical representation showing the change in total cost that comes with producing one more unit of an item.

Marginal Revenue Curve

A graph showing how marginal revenue varies as output quantity changes, important for understanding profit maximization.

Collude

When companies or organizations conspire or work together, often in secret, to control a market or manipulate prices at the expense of fair competition.

Nash Equilibrium

A concept in game theory where no player can gain by changing strategies if the other players keep their strategies unchanged, representing a situation of mutual best responses.