You Arrive at Your Final Exam for Your Law Class

question 22

Essay

You arrive at your final exam for your law class, and as you approach the door, your professor is standing at the door with a sign saying, "THE COST FOR TAKING THIS TEST IS $10 PAYABLE TO ME" (the professor). Your professor is also holding a tin cup for students to place their cash and checks into. Speaking entirely from a contract perspective, can your professor enforce such a fee? Explain fully.

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Definitions:

Receivables

Amounts of money owed to a company by its customers or clients for goods or services provided on credit.

Bad Debt Expense Adjustment

An accounting entry to estimate and record the amount of accounts receivable that is not expected to be collected.

Accounts Receivables Turnover

A financial ratio that measures how often a company collects its average accounts receivable over a period.

Credit Sales

Sales transactions where payment is deferred, allowing customers to purchase goods or services on credit.