Reference no: EM131387620
Sam and Eleanor Gaito purchased a home from Howard Frank Auman, Jr., in the spring of 2008. Auman had completed the construction of the house in November 2003. In the interim, three different parties had lived in the house for brief periods, but Auman had retained ownership. The last tenants, the Ashleys, experienced difficulties with the home's air-conditioning system. Repairs were attempted, but no effort was made to change the capacity of the airconditioning unit.
When the Gaitos moved into the house in June 2008 they too had problems with the air-conditioning. The system created only a ten-degree difference between the outside and inside temperatures. The Gaitos complained to Auman on a number of occasions, but extensive repairs failed to correct the cooling problem.
In May 2011, the Gaitos brought an action against Auman, alleging that the purchase price of the home included central air-conditioning and that Auman had breached the implied warranty of habitability.
At trial, an expert in the field of heating and air-conditioning testified that a four-ton air-conditioning system, rather than the three-and-a-half-ton system originally installed, was appropriate for the Gaitos's house. The jury returned a verdict in favor of the Gaitos in the amount of $3,655. Explain whether this decision is correct.
|
What is the initial payment
: a. What is the initial payment? b. How much interest will accrue during the first year? c. What will the balance be after five years?
|
|
Can the city condemn the property
: The city concedes that the properties around the condemned property could be assembled and structures could be designed to span over the condemned property, in which case the air rights would be quite valuable. Can the city condemn the property?
|
|
What is unidas unlevered cost of capital
: a. What is Unidas unlevered cost of capital? b. What is Unida's after tax debt cost of capital? c. What is unida's weighted average cost of capital?
|
|
Current share price
: Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22, $15, $7.4 and $2.7. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on th..
|
|
Explain whether given decision is correct
: Sam and Eleanor Gaito purchased a home from Howard Frank Auman, Jr., in the spring of 2008. Auman had completed the construction of the house in November 2003.- Explain whether this decision is correct.
|
|
What is the value of the stock today
: Could I Industries just paid a dividend of $1.40 per share. The dividends are expected to grow at a 18 percent rate for the next 5 years and then level off to a 4 percent growth rate indefinitely. If the required return is 14 percent, what is the ..
|
|
Industry and competitor standard ratios
: Compare and contrast your company's ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company's ra..
|
|
Does the city have the right to enforce such an ordinance
: Playtime Theaters and Sea-First Properties purchased two theaters in Renton, Washington, with the intention of exhibiting adult films.- Does the city have the right to enforce such an ordinance? Explain.
|
|
Do you think some of the issues raised are still valid today
: According to Hall, what are the five cultural components that, if they were understood and appreciated, would help a businessperson do well in an international environment? Do you agree with the author's idea that American businesspeople are nota..
|