They Couldn't Remember Exactly How It Happened, but the Mauri's

question 16

Multiple Choice

They couldn't remember exactly how it happened, but the Mauri's ended up a three-computer family with the consequent mess of books and papers in three different rooms. Mr. Mauri hired a general contractor, Mr. Wip, to build a "computer room." Wip had several qualified workers but still sub-contracted with an electrician and a carpenter. The work went well. Mauri held back 10%, but paid out 90% in good faith; i.e., when he paid, there were no complaints or liens filed. It turned out, however, that before anyone had completed his work--and no one expected payment until the job was finished-- Wip disappeared with the money. On these facts, which of the following is true?

• A) The subcontractors, but not the workers, are entitled to place a lien on Mauri's property.
• B) If the electrician failed to file his lien on time, he can file it late if he uses the right form.
• C) If all those entitled to file a lien do file and prove in court the amounts owed, Mauri is responsible for the sum total of those claims.
• D) The workers and subcontractors have an action against Wip for breach of contract.
• E) If the carpenter properly files a lien in the appropriate office, he can be assured that he will recover the entire amount owed.

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Definitions:

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.

Alpha

Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.

Expected Rate of Return

The projected percentage return on an investment over a given period, factoring in all known variables.

Beta

A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.