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A Homebuilder Who Disposed of Asbestos Shingles by Burying Them

question 80

Multiple Choice

A homebuilder who disposed of asbestos shingles by burying them on the buyer's property may please the home buyer because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of the crime. At which stage of the social responsibility pyramid is the builder most likely operating?

Recognize the ethical and legal issues involved in business dealings and the exploitation of trust or authority.

Differentiate between the various factors that can affect the enforceability of a contract such as concealment, duress, and undue influence.

Evaluate the relevance and application of legal doctrines in specific contractual disputes and case law.

Understand the importance of factual bases and the reliance on them in forming contracts.

Definitions:

Doubtful Accounts

An estimate of the debts owed to a company that may not be collected, often listed as a contra account to accounts receivable.

Accounts Receivable

Funds that are yet to be paid by customers for the products or services they have received from a business.

Credit Sales

Credit Sales are sales made on credit, where the payment is received after the sale has been made, effectively extending a line of credit to the customer.

Note Receivable

A written promise for amounts to be received by a debtor, typically including interest, representing a credit instrument to the holder.