X,a Builder,contracts with the City of Y to Build a New

question 43

Multiple Choice

X,a builder,contracts with the city of Y to build a new convention center.Z,a hotel owner,stands to benefit once the convention center is built,so Z is angry when X backs out of the contract.Z wants to sue X.Can Z sue X?

• A)Z is a creditor beneficiary and can sue X.
• B)Z is a donee beneficiary and can sue X.
• C)Z can sue X because Z is a citizen of Y,with whom X contracted.
• D)Z is an incidental beneficiary and cannot sue X.

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Definitions:

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the government’s unemployment benefits.

SUTA Taxes

State Unemployment Tax Act taxes, which are state unemployment insurance contributions that employers must pay to provide unemployment benefits to workers who have been laid off.

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are made.

Net Pay

The amount of money an employee receives after all deductions, such as taxes and retirement contributions, have been subtracted from their gross pay.