Patty Is a Poor College Student Struggling to Work and Keep

question 32

Multiple Choice

Patty is a poor college student struggling to work and keep up with her studies.Fred,her uncle,promises to pay Patty support of $200 per month for the next six months.Although Fred didn't ask her to,she quits her current job in order to devote full time to her studies for the next six months.Fred makes one payment and then stops with no explanation.If Patty sues,what is the likely result?

• A)Fred would win,as he did not ask Patty to quit her job.
• B)Patty would win,as a contract was formed when Fred promised to pay her the support.
• C)Fred would win,as family members cannot sue each other for breach of an oral promise.
• D)Patty may win under the doctrine of promissory estoppel.

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Definitions:

FOB Destination

A term used in shipping indicating that the seller is responsible for the freight costs and owns the goods in transit until they are delivered to the buyer's location.

Merchandise Inventory

The goods a retail store has purchased and intends to sell to customers, representing one of the retailer's primary assets.

General and Administrative Expenses

Overhead expenses not directly tied to a specific function like production or sales, including executive salaries, legal fees, and other administrative costs.

FOB Shipping Point

A term used in shipping where the buyer takes responsibility for the goods once they are shipped, and bears transportation costs.