Bank Robbery

question 33

Multiple Choice

Bank Robbery.Victor robbed Safe Bank of a significant sum of cash.Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor.Ted,a police officer in town,promised Safe Bank officials that he would apprehend Victor.While on duty,Ted arrested Victor at a hamburger joint in town.He found Victor based upon a hunch he had after Ursula,who dated Victor,told him about various places Victor enjoyed eating.The bank refuses to pay either Ursula or Ted any of the reward money.In a lawsuit between the bank and Ted,regarding the reward funds,who is likely to prevail and why?

• A)The bank is likely to prevail because Ted only provided past consideration.
• B)The bank is likely to prevail because Ted had a preexisting duty to catch Victor.
• C)The bank is likely to prevail because Ted's promise to catch Victor was an illusory promise.
• D)Ted is likely to prevail because his promise to catch Victor resulted in a binding bilateral contract.
• E)Ted is likely to prevail because an enforceable unilateral contract arose from his performance.

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Definitions:

Book Value Method

An accounting technique that determines the value of an asset on a balance sheet by its historical cost minus any accumulated depreciation.

Loss On Bond Conversion

An accounting entry that represents the difference when the conversion of debt into stock is at a value lower than its market price.

Straight-line Amortization

The method of gradually reducing the cost of an intangible asset over its useful life in a uniform manner.

Market Value Method

The market value method is a valuation method used to assess the value of an asset based on its current market price.