George Contracted with Bob to Have a Racing Bike Modified

question 29

Multiple Choice

George contracted with Bob to have a racing bike modified for him to be delivered on February 20,for a race on February 22.The price for the modification was agreed on as$100.About February 10,George became nervous about the bike being finished on time and went to see Bob.Bob said that he was very busy,but if he really wanted to be sure that it would be finished on time,George would have to pay him an extra $25 so he could pay his employees overtime.George agreed and Bob completed the modifications as requested,on time.How much does George legally owe?

• A)only $100 because Bob had an existing duty to modify the bike and the price was settled
• B)$25 because past consideration is no consideration
• C)$125 because Bob gave consideration for George's promise to pay the additional $25
• D)$100 plus whatever it cost for the overtime
• E)a reasonable amount only

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Definitions:

Market System

An economic system where decisions about production, investment, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Command-and-control

A type of regulation where the government sets specific limits for pollution emissions and may also mandate specific pollution control technologies.

Incentive-based Regulations

Regulatory methods designed to encourage businesses to improve their environmental performance through rewards or penalties.

Political Suicide

Actions or decisions by a politician that are likely to seriously harm their own career or reputation.