Fact Pattern 14-B1 (Questions B14-B15 Apply)

question 10

Multiple Choice

Fact Pattern 14-B1 (Questions B14-B15 apply)
Bay City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault.Coco's Chocolate Creations signs a lease with Bay City that contains the clause.
-Refer to Fact pattern 14-B1.The clause is most likely

• A)enforceable as a matter of public policy.
• B)enforceable if either party is considered to be a business for essential services.
• C)enforceable if the lease also involves residential property.
• D)unenforceable.

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Definitions:

First-In, First-Out

An inventory valuation method where the goods purchased or produced first are sold or used first.

Equivalent Units

A metric used in cost accounting to express the amount of work done by manufacturers who have partially completed units on hand at the end of an accounting period.

Work in Process-Assembly Department

Inventory account that tracks the cost of partially completed goods that are still in the production process in the assembly department.

Equivalent Unit

A concept used in cost accounting to represent a portion of work done on a product, quantified in terms of fully completed units.