Jones Hired Smith,a General Contractor,to Build a Garage as an Addition

question 64

Multiple Choice

Jones hired Smith,a general contractor,to build a garage as an addition to Jones' home.Smith hired Adam to do the roofing work on this garage.All the work was done satisfactorily,and at the completion of the work,Jones paid Smith the agreed price.However,Smith never paid Adam for his work.Three weeks after Adam finished his work,he filed a mechanics' lien against the property and demanded that Jones pays him for his work.Which of the following is most correct?

• A) Jones need not pay Adam because he has already paid in full for the garage.
• B) Jones need not pay Adam because Adams' contract is actually with Smith in this case.
• C) Jones should pay Adam because Adam has the right of redemption.
• D) Jones should pay Adam because he can enforce his lien claim against the property.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Grain Surplus

An excess amount of grain production over the demand, leading to stored or wasted grain.