Holtz Hires Joe, a Builder, to Convert His Attic into an Apartment

question 2

Multiple Choice

Holtz hires Joe, a builder, to convert his attic into an apartment so that Holtz's mother can move in. Joe employs two carpenters, an electrician, and a plumber to do the actual work. When making payments to Joe, Holtz holds back the 10% required by statute. After waiting the legislated minimum period, Holtz discovers that several liens have been registered against his property. It turns out that Joe failed to pay the various subcontractors for their work. Which one of the following statements best describes Holtz's position?

• A) Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe.
• B) Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation.
• C) Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property.
• D) Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations.
• E) If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater.

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Definitions:

Premise Control

A security measure that ensures the safety and integrity of physical spaces or properties.

Marketing Mix

The set of actions, or tactics, that a company uses to promote its brand or product in the market, traditionally defined as the four Ps: Product, Price, Place, and Promotion.

SWOT Analysis

A strategic planning tool that involves evaluating the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Market Potential

An estimate of the maximum total sales of a product or service that could be achieved within a specific market segment over a certain time period.