They Couldn't Remember Exactly How It Happened,but the Mauris Ended

question 96

Multiple Choice

They couldn't remember exactly how it happened,but the Mauris ended up a three-computer family with the consequent mess of books and papers in three different rooms.Mr.Mauri hired a general contractor,Mr.Wip,to build a "computer room." Wip had several qualified workers but still sub-contracted with an electrician and a carpenter.The work went well.Mauri held back 10 percent,but paid out 90 percent in good faith; i.e.,when he paid,there were no complaints or liens filed.It turned out,however,that before any of the workers had completed their work-and no one expected payment until the job was finished-Wip disappeared with the money.Given these facts,which of the following is true?

• A) The subcontractors, but not the workers, are entitled to place a lien on Mauri's property.
• B) If the electrician failed to file his lien on time, he can file it late if he uses the right form.
• C) If the carpenter properly files a lien in the appropriate office, he can be assured that he will recover the entire amount owed.
• D) If all those entitled to file a lien do file and prove in court the amounts owed, Mauri is responsible for the sum total of those claims.
• E) The workers and subcontractors have an action against Wip for breach of contract.

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Definitions:

Cumulative

Pertaining to an aggregate or total amount added up over time, often used in context with dividends that are accumulated if not paid out.

Noncumulative

A term often used in dividends policy, indicating that if a dividend is not paid out, it doesn't accumulate for future payment.

U.S. GAAP

United States Generally Accepted Accounting Principles, which constitute the framework of guidelines for financial accounting used in the US.

Interest Expense

The charge for borrowing money typically calculated as a rate of the principal amount annually.