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:

Subsurface Oil

Oil deposits located beneath the surface of the Earth, typically extracted through drilling operations.

Overthrust Belt

A region in the earth's crust where large areas of rock have been moved over one another typically due to compressional forces.

Anticline

A type of fold that is convex up and has its oldest beds at its core, often associated with the trapping of petroleum.

Green River Basin

A major river basin in the western United States, known for its significant deposits of oil shale and natural gas.