Reference - Bank Robbery

question 61

Multiple Choice

Reference - Bank Robbery. Safe Bank was robbed of a significant sum of cash by Victor. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. In a lawsuit between the bank and Ted, regarding the reward funds, who is likely to prevail and why?

• A) The bank is likely to prevail because Ted only provided past consideration.
• B) The bank is likely to prevail because Ted had a preexisting duty to catch Victor.
• C) The bank is likely to prevail because Ted's promise to catch Victor was illusory.
• D) Ted is likely to prevail because his promise to catch Victor resulted in a binding bilateral contract.
• E) Ted is likely to prevail because an enforceable unilateral contract exists based on his performance.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their gained benefit.

Market Price

The current price at which a commodity, security, or service can be bought or sold in a particular market.

Willingness to Pay

The maximum amount an individual is prepared to spend for a particular good or service.

Consumer Surplus

The gap between the aggregate amount that buyers are willing and able to allocate for a good or service and the total sum they really pay.