Reference - Cheap Principal

question 64

Multiple Choice

Reference - Cheap Principal. Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers on credit from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. Which of the following is true regarding any right of reimbursement Jason is due from Nick?

• A) Jason is not due any reimbursement because he did not get permission from Jason before paying ABC Computers.
• B) Jason is only due 50% of whatever he paid because he did not get permission from Jason before paying ABC Computers.
• C) Jason is not due any reimbursement from Nick unless he can establish that Nick signed a written contract authorizing him to personally pay debts incurred.
• D) Jason is not due any reimbursement from Nick unless Jason can establish by a preponderance of the evidence that ABC Computers would not have agreed to take a lesser amount.
• E) Jason is entitled to reimbursement from Nick.

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Definitions:

Fraudulent Billing

The act of intentionally billing for medical services that were not provided or billing for services at a higher rate than is appropriate.

Patient Records

Documents that contain a comprehensive history of a patient's medical background and treatment.

Dated

Indicative of a time that has passed or something outdated in style or technology.

Signature

A person's handwritten depiction of their name, or a unique mark representing themselves, used for authorization or agreement.