13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston. However,Alston is authorized only to transport goods between Milwaukee and St. Louis. Sykes Transport Company hasthe authority to transport goods between St. Louis and Houston. Therefore, Alston agrees to turn its trailerover to Sykes Transport Company in St. Louis, and Sykes will deliver it to Houston. In the trailer interchangeagreement, Sykes assumes liability for any physical damage to the trailer. Unfortunately, the trailer wasdestroyed in a collision just outside Memphis. Sykes does not believe its driver's actions caused the collision.The trailer interchange coverage in Sykes's motor carrier policy includes only comprehensive coverage. Howshould the trailer interchange coverage of Sykes's motor carrier policy respond?Oa. The insurer should deny the claim because collision is not a covered peril.Ob. The insurer should defend Sykes and pay the claim if Syks is found liable.Oc. The insurer should deny the claim only if the collision was caused by Sykes's negligence.od. The insurer should pay the claim because Sykes assumed legal liability by contract.

Option D is correct because the trailer interchange agreement between Alston Trucking and Sykes…

Answered: 13. Alston Trucking has a contract to…

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section: Chapter Questions

Problem 5QAP

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Customer X enters into a contract with Supplier Y for the use of a specific car for one (1) year. The car shall be modified according to the specification of Customer X . Customer x shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement power of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide a brief explanation. Make it brief and concise. Explain it in a simple way. 3 sentences is enough. PLEASE NO PLAGIARISM I WILL REPORT YOU!
Customer X enters into a contract with Supplier Y for the use of a specific car for one year. The car shall be modified according to the specifications of Customer X. Customer X shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement car of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than the default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide brief explanations.
A wonderland tents and furniture LLC is involved in supplying tents and furniture items to customers for conducting events and celebrations. The company received a claim from customer for OMR. 35,000 as damages because some furniture were not delivered in time for a graduation ceremony. The company admits the delay but disputes the amount of the claim pointing out that alternative furniture arrangement for the event cost no more than OMR. 8,000. How would you advise the wonderland tents and furniture company to treat the claim when finalizing the financial statements for the year. a- Account for the best estimate as liability b- Ignore the claim c- Record a liability of OMR. 35,000 d- Record a liability of OMR. 8,000
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Vaughn Manufacturing is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Vaughn's lawyer states that it is probable that Vaughn will lose the suit and be found liable for a judgment costing Vaughn anywhere from $1820000 to $8970000. However, the lawyer states that the most probable cost is $5370000. As a result of the above facts, Vaughn should accrue O a loss contingency of $5370000 but not disclose any additional contingency. O a loss contingency of $1820000 and disclose an additional contingency of up to $7150000. O no loss contingency but disclose a contingency of $1820000 to $8970000. O a loss contingency of $5370000 and disclose an additional contingency of up to $3600000.
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1. Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contract on June 1, 2024, with a local homeowner. The customer purchases windows for a price of $4,700 and chooses Windsor to do the installation. Windsor charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,200. The customer pays Windsor $4,000 (which equals the fair value of the windows, which have a cost of $2,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2024, Windsor completes installation on September 15, 2024, and the customer pays the balance due. Prepare the journal entries for Windsor in 2024.…
James Koontz agreed to purchase a Plymouth Sundance from Chrysler Credit Corporation (Chrysler) in exchange for sixty payments of $185.92. Koontz soon thereafter defaulted, and Chrysler notified Koontz that, unless he made the payments, it would repossess the vehicle. Koontz responded by notifying Chrysler that he would make every effort to make up missed payments, that he did not want the car repossessed, and that Chrysler was not to enter his private property to repossess the vehicle. A few weeks later, Chrysler sent the M & M Agency to repossess the vehicle. When he heard the repossession in progress, Koontz, dressed only in his underwear, came outside and yelled, “Don’t take it!” The repossessor ignored him and took the car anyway. Koontz did not physically challenge or threaten the repossessor. a. Discuss the arguments that Chrysler legally repossessed the automobile. b. Discuss the arguments that Chrysler illegally repossessed the automobile. c. Who should prevail?
Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV of $482500. The state awarded Matthew $605000, which he used to purchase a qualified replacement property for $527100 within the replacement time period. Calculate the basis in there placement property for the involuntary conversion. A)$452000 B) $527100 C)$605000 D) $482500

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