Stintson Corp

question 30

Multiple Choice

Stintson Corp. had agreed to create employee identity cards for McLaughlin Inc. for $60,000. Some of the cards delivered by Stintson Corp. had damages made during the lamination process. McLaughlin Inc. promised Stintson Corp. an additional $20,000 to replace the damaged identity cards, and Stintson Corp. did so. Then McLaughlin Inc. refused to pay Stintson Corp. more than $60,000 for the work. Which of the following statements is true of this situation?

• A) Stintson Corp. is not entitled to any more than $60,000 for its work.
• B) McLaughlin Inc. owes Stintson Corp. the additional $20,000.
• C) Stintson Corp. would still be entitled only to $60,000 because such an act is new consideration that was provided to support the modification.
• D) Stintson Corp. is entitled to the additional $20,000 as legal value has nothing to do with adequacy of consideration.

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Definitions:

Two-Tailed T Test

A statistical hypothesis test used to determine if there is a significant difference between the means of two groups, with no presumption about the direction of the difference.

Null Hypothesis

A statement or hypothesis that suggests there is no statistical significance between the two variables being studied or no effect of an experimental variable.

P > 0.05

Indicates that the probability of obtaining the observed data, or more extreme, under the null hypothesis is greater than 5%, suggesting results are not statistically significant.

T Test

A statistical test used to compare the means of two groups to determine if they are significantly different from each other.