Cut-Rate Construction Company (CCC) Begins Building a Restaurant for Diners

question 31

Multiple Choice

Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 11-3.If CCC offers no reason for the extra $100,000,but says only that it will otherwise stop construction,the agreement is

• A)enforceable as an accord and satisfaction.
• B)enforceable because of unforeseen difficulties.
• C)unenforceable as an illusory promise.
• D)unenforceable due to the preexisting duty rule.

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Definitions:

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Authority Figure

An individual who holds power or influence in a particular context, often due to their position, expertise, or reputation.

Group Standard

The norms or expectations that a group holds for the behavior, attitudes, and appearance of its members.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.