Reference - Earthquake

question 61

Multiple Choice

Reference - Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel that he would complete renovations on her upper scale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area; and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion?

• A) Mitigated damages term
• B) Liquidated damages clause
• C) Stipulated damages
• D) Acknowledged damages clause
• E) Approved and acknowledged damages clause

Explain how different stimuli can induce drives and motivate behavior.

Differentiate between primary, secondary, and acquired drives in association with learning experiences.

Analyze Hull's mathematical model for predicting behavior and the importance of known variables.

Describe the role of drive reduction in developing habit strength.

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Definitions:

Reorder Point

The level of inventory which triggers an action to replenish that particular inventory stock.

Inventory Order

The process of ordering additional products or materials to replenish stock levels in anticipation of demand or to maintain inventory at desired levels.

Economic Order Point

The ideal quantity of inventory a company should order to minimize costs, including holding and shortage costs.

Credit Period

The duration during which a buyer can pay for goods or services received without incurring interest charges, often used in trade credit arrangements.