Hugo owes Bank of Maryland $15,000. He files for bankruptcy. Normally, in bankruptcy, the debt would be wiped out at the end of the bankruptcy (discharge). Hugo does not want that to happen because the loan is for his car, so he would have to return his car for the debt to disappear. Hugo decides to reaffirm his debt to the Bank of Maryland, so he can keep his car even though he will still be liable for the debt. A few months after reaffirming the debt he changes his mind and claims the reaffirmation lacked consideration. Was the reaffirmation valid?

1.3.2 How efficient factors of production are being used. (1)

In exchange for $750,000, Juliet offers to recreate the carnival scene from the musical, “Grease,” in business tycoon Henry’s backyard for Henry’s New Year’s Eve party. Henry is a huge Grease fan, and Juliet threw a “super-dooper sweetener” into the offer, which stated that she would get at least ten of the living cast members from the movie to make an appearance and sing “Summer Nights” and at least two other tunes of the party guests’ choosing.  Henry was thrilled; in early October – 85 days before the party – Henry accepts Juliet’s offer. The day of the party, Juliet called Henry and informed him that none of the cast of Grease would be making an appearance, but that the rest of the party would come off “without a hitch.” Henry is very upset. He not only wants his down payment to Juliet of $200,000 to be returned to him, but also wants Juliet to reimburse his incidental costs to date related to putting on the party (some prepaid costs not covered in the Juliet-Henry contract that concern catering and crowd control). Henry claims that he has serious legal grounds to sue Juliet. Does he?

For the next five questions, you will have to complete the work on a separate paper to show your work and present your answer. (No work-No credit) After you have completed each question, hold up your work the webcam. Once you have submitted the test, an assignment will be available for you to submit you work via scan/photo.

Surgery Success A surgical technique is performed on fifteen patients. You are told that there is a 70% chance of success. Find the probability that the surgery is: Successful for at least seven patients Non successful for more than six but less than thirteen patients Successful for less than thirteen patients Non successful for at least six but no more than ten patients Do not submit your work here. Hold up your work to the webcam when you are done. Once you have submitted the test, you will upload your work on a separate assignment which will unlock after completing this test.

Ronnie had a severe gambling problem. Every night, he stayed awake to the wee hours of the morning picking games and spreads and betting online or calling his bookie in Vegas. Finally, Ronnie’s wife, Diane, had enough of Ronnie’s gambling. Diane entered into a written contract with Cole, a gambling addiction therapist, who agreed to treat Ronnie twice a week for six months. The contract is signed in writing (by the contract parties, Diane and Cole; and, of course, also by the patient, Ronnie). Ronnie then begins his counseling. However, after two months, Diane sees no improvement in Ronnie’s behavior. After all, her debit cards just got declined at the store, and when she confronted Ronnie, he simply stated, “I lost $1,000 on the Steelers last night.”  Diane decides she is going to breach the contract, that is, to stop paying Cole. What would a court most likely find, if Cole sues Diane to enforce the contract and make her pay for the breach?

1.3.4 Many buyers and sellers. (1)

Maria goes to Danny’s Sub Shop and buys a meatball sub. Maria takes a seat and, just before taking her first bite, notices that what looks to be a meatball covered in sauce is actually moving! It turns out to be a roach. Maria flings her sub to the floor and screams. Danny, fearing her public outcry, tells Maria, “I’ll give you whatever you want if you just stop screaming. You can have a hundred dollars now, plus free subs and chips for the next 10 months – you just need to stop screaming.” Maria stops screaming, and Danny says, “Thank you; we’ve got a deal.” Danny hands Maria five $20 bills, says, “I’ll write everything down,” and begins writing out the terms of their deal on a napkin. The terms on the napkin are: “Maria agrees to not sue Danny about today’s incident with the alleged roach. In return, Maria has received $100 and will get free subs for ten months from today’s date of June 30, 2021.” Maria and Danny both sign the napkin. A month later, Maria returns to Danny’s Sub Shop and orders a turkey sub and potato chips. Danny gives her the sub for free but charges her for the chips. Maria complains that the contract included free chips. Danny says he was just trying to calm her down when he said that, and that they “officially agreed” only to free subs. Should Danny provide Maria with free chips?

1.1.3 A market described by demand and supply curves, is in equilibrium …. (2)

1.3.3 Effectiveness of a product in satisfying wants. (1)