What will be the likely disposition of the case

Assignment Help Financial Management
Reference no: EM131817770

Johnny needs to buy a lawn mower. His lawn is relatively modest, so he began looking for an affordable model. His friend, Mark, also needed a lawn mower. His yard was much larger, so he went to Johnny and said “Johnny, we both need a lawn mower. Why don’t we go shopping and get the lawn mower together.” Johnny and Mark found a suitable lawn mower for $10,000. Johnny actually talked to the salesmen. And the salesmen agreed to extend Johnny a loan to purchase the lawn mower if Mark would orally contract to stand as a surety for Johnny if the payments were not made on time. For two months, Mark uses the lawn mower more than anyone. But then Johnny fails to make payments and the salesman sues Mark under the oral contract. What will be the likely disposition of the case?

Reference no: EM131817770

Questions Cloud

Reflecting your thoughts on partnering to heal : Create a journal entry of 200-250 words reflecting on your personal experiences or thoughts regarding the activities at these sites, the content
Determine the total cost to redecorate the mayor offices : Fine & Associates is an interior decorating firm in Tucson. Determine the total cost to redecorate the mayor's offices
What was his annual rate of return on this painting : What was his annual rate of return on this painting?
Size of a sample to test whether population : In this chapter, we learned to use the mean, standard deviation, and size of a sample to test whether population mean was actually different
What will be the likely disposition of the case : But then Johnny fails to make payments and the salesman sues Mark under the oral contract. What will be the likely disposition of the case?
Potential harmful consequences of committing : Discuss the potential harmful consequences of committing a Type I Error in this situation, and the potential harmful consequences of committing.
Pay for phone and interest rate on your saving account : Suppose that you do have money to pay for the phone and the interest rate on your saving account is 0.2%. Which is a better deal for you? Why?
Prepare a production budget for the third quarter : Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total
What role does ethics play in communication : What role does ethics play in communication. Create and evaluate professional documents. Analyze professional communication examples to assist in revision.

Reviews

Write a Review

Financial Management Questions & Answers

  What are some reasons they decide to issue bonds

what are some (detailed) reasons they decide to issue bonds?

  Dividends is to value the dividends over the next five years

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $2...

  Firm sell to break-even on a cash basis

The Motor Works is considering an expansion project with estimated annual fixed costs of $71,000, depreciation of $38,500, variable costs per unit of $17.90 and an estimated sales price of $26.50 per unit. How many units must the firm sell to break-e..

  The bonds make semiannual payments

Heginbotham Corp. issued 15-year bonds two years ago at a coupon rate of 7.9 percent. The bonds make semiannual payments.

  Dollar amount of dividends that he received for owning stock

Lee purchased a stock one year ago for $24. The stock is now worth $33, and the total return to Lee for owning the stock was 0.39. What is the dollar amount of dividends that he received for owning the stock during the year?

  The demand for cash flowing from real estate capital market

The supply of cash flowing into real estate capital markets increases at a rate faster than the demand for cash flowing from real estate capital markets?

  What is its cost of common equity

Cost of Common Equity and WACC Patton Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 11% and its marginal tax rate is 40%. The current stock price is P0 = $..

  Complete the robins federal tax return

Warner and Augustine Robins, both 33 years old, have been married for 9 years. They live at 638 Russell Parkway, Macon, GA 31207. The Dragon Lady stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner father. Complete ..

  Determination of project cash flows

As a noncash expense, depreciation is irrelevant in the determination of a project's cash flows.

  What will be your gain on the investment

Assume you buy a 12-year, $1,000 par value zero-coupon bond that provides a 10 percent yield. Almost immediately after you buy the bond, yields go down to 8 percent. What will be your gain on the investment?

  Change in rate of depreciation will affect rate of growth

Consider a country where population growth is 2% a year. An improvement in the durability of industrial machines now causes a decrease in the depreciation rate -- machines, on average, last longer than they used to. Use the Solow growth model to expl..

  What is gasoline marginal profit

Given Gasoline production function of QG = 72MG 1.5 MG2, what is gasoline marginal profit?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd