Bev and Renee Moved to a Large Farm They Recently

question 29

Multiple Choice

Bev and Renee moved to a large farm they recently purchased.The couple wish to subdivide some of the land and sell a lot.They contracted a local surveyor who completed the survey of the perspective lot to be severed.After the deal had been completed and the lot sold,the couple was confronted by the new lot owner,and a neighbour of the farmer.They produced an older deed showing the newly severed lot belonged to the neighbour's farm and did not belong to Bev and Renee.With the threat of legal action looming,the couple confronted the surveyor who told them they cannot sue him because he is an unlicensed professional,and is free from any responsibility for the services he renders.

• A)The contractor is right.Bev and Renee used an unlicensed professional and this action makes them responsible under contractual law for all mistakes that the person has made.
• B)Bev and Renee can sue him because although he is unlicensed,he is still responsible for the damage they incurred under a breach of contract.
• C)Bev and Renee are responsible for their own damages,because according to law you are required,when using an unlicensed professional to have their work checked by a professional.
• D)All of the responses are correct.
• E)None of the responses are correct.

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Definitions:

Controlling Interest

Ownership interest in a business entity through which a party has the power to influence or direct its policies and management.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after eliminating intercompany transactions.

Unrealized Profit

Profit that has been made on paper through an investment but has not yet been realized by selling the asset in question.

After-tax Gain

The amount of profit that remains after subtracting the taxes owed on the gain.