Economics > QUESTIONS & ANSWERS > CHAPTER 10—INSIGHT INTO ETHICS: IS IT RIGHT FOR A COMPANY TO CHANGE THE PRIZE OFFERED IN A CONTEST (All)

CHAPTER 10—INSIGHT INTO ETHICS: IS IT RIGHT FOR A COMPANY TO CHANGE THE PRIZE OFFERED IN A CONTEST?

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A1. Sports Fit Company sponsors the “$100,000 Game” in which contestants compete in ten separate athletic events over a period of weeks. Sports Fit announces that the winner of each event will be ... awarded $5,000 with the “Ultimate Champion”—the winner of the most events—awarded $50,000. If the “$100,000 Game” is treated as a unilateral contract, Sports Fit can a. cancel the contest or alter its terms at any time. b. not modify the terms of the contest after it begins. c. reduce the amount of the event prizes but not the grand prize. d. reduce the amount of the grand prize but not the event prizes. ANSWER: B PAGE: 209 TYPE: N NAT: AACSB Reflective AICPA Legal CHAPTER 14—INSIGHT INTO ETHICS: HOW MUCH COMPANY INFORMATION MUST EMPLOYERS DISCLOSE TO PROSPECTIVE EMPLOYERS? A2. Girard accepts a job with Deep Vault Bank in reliance on assurances that Deep Vault will not soon be sold. In fact, negotiations to sell the bank are under way at the time that Girard is hired. Girard is most likely a victim of a. fraud. b. mistake. c. nothing. d. puffery. ANSWER: A PAGE: 282 TYPE: N NAT: AACSB Reflective AICPA Legal CHAPTER 17—INSIGHT INTO ETHICS: WHEN IS IMPOSSIBILITY OF PERFORMANCE A VALID DEFENSE? A3. Bonnie contracts to deliver a crop of soybeans to Farmers Co-op. A tornado destroys the crop on her farm. The buyer insists that she deliver by acquiring soybeans on the open market. She claims that this is prohibitively expensive. Her best argument against enforcing the contract is a. frustration of purpose. b. objective impossibility of performance. c. anticipatory repudiation. d. commercial impracticability. ANSWER: D PAGE: 328 TYPE: N NAT: AACSB Reflective AICPA Legal UNIT THREE—FOCUS ON ETHICS: CONTRACT LAW AND THE APPLICATION OF ETHICS A4. Topographical Engineers, Inc., which is new to its business, offers its services at less than half their possible market price to United Road Crew Construction, Inc., which knows the services’ value. United’s decision to accept the offer without commenting on the price could be justified by a. the concept of unconscionability. b. the doctrine of promissory estoppel. c. the principle of freedom of contract. d. the Statute of Frauds. ANSWER: C PAGE: 350 TYPE: = NAT: AACSB Reflective AICPA Legal A5. Merchandise Presentation Company enters into a contract with Newt to perform certain services for a certain price. Newt is later dissatisfied with what he claims is a low level of service for a high price. Whether this deal is unconscionable is subject to a. the interpretation of a court. b. the opinion of the buyer. c. the position of the seller. d. the precise definition in UCC 2–302. ANSWER: A PAGE: 350 TYPE: = NAT: AACSB Reflective AICPA Legal [Show More]

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