George Contracted with Bob to Have a Racing Bike Modified

question 105

Multiple Choice

George contracted with Bob to have a racing bike modified for him to be delivered on February 20, for a race on February 22.The price for the modification was agreed on$100.About February 10, George became nervous about the bike being finished on time and went to see Bob.Bob said that he was very busy, but if he really wanted to be sure that it would be finished on time, George would have to pay him an extra $25 so he could pay his employees overtime.George agreed and Bob completed the modifications as requested, on time.How much does George legally owe?

• A)Only $100 because Bob had an existing duty to modify the bike and the price was settled
• B)$25 because past consideration is no consideration
• C)$125 because Bob gave consideration for George's promise to pay the additional $25
• D)$100 plus whatever it cost for the overtime
• E)A reasonable amount only

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Definitions:

Upper Control Limit

In quality control, it represents the highest value on a control chart that a process variable can reach before it is considered to signal potential loss of control, necessitating investigation.

Acceptance Sampling

A statistical quality control method where a random sample of items from a lot is inspected to decide if the entire lot should be accepted or rejected.

Defects

Imperfections or faults in a product or process that deviate from the desired specifications, affecting quality.

Sigma Control Limits

Statistical boundaries set in process control that represent acceptable variations in product quality or process performance, typically associated with Six Sigma methodology.