Sam,a Plumber,entered into a Contract for $75,000 with Orr,Inc

question 7

Multiple Choice

Sam,a plumber,entered into a contract for $75,000 with Orr,Inc. ,to perform certain plumbing services in a building owned by Orr.After Sam had satisfactorily performed the work,Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license.As a result,Orr denied paying any money to Sam.The licensing statute was enacted merely to raise revenue for the state.An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work.The cost of the materials which Sam supplied was $35,000.If Sam sues Orr,Sam will be entitled to recover:

• A) nothing.
• B) $35,000.
• C) $70,000.
• D) $75,000.

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Definitions:

Commercial Banks

Organizations that take in deposits, issue different types of loans, and offer a range of financial services to both individuals and enterprises.

Savings Account

A bank account where money is kept for savings purposes, offering interest on the deposited funds.

Precautionary Cash Balances

Precautionary cash balances refer to money held by both businesses and individuals to meet unexpected expenses or financial emergencies.

Unexpected Expenditures

Expenses that were not planned or budgeted for, often requiring immediate payment.