Britta Jones is a widowed mother of two who lives on Harrison Boulevard in the Historic District
Question:
Britta Jones is a widowed mother of two who lives on Harrison Boulevard in the Historic District in Boise, Idaho. Britta hired Steve to help run the Jones family household. This full-time, live-in position consists of preparing breakfast and packing school lunches for the kids, preparing family dinners, maintaining the interior of the home (e.g., cleaning, hiring workers to repair appliances or clean carpets), hiring workers to maintain the exterior of the home and grounds (e.g., mowing the lawn, repairing the fence), and purchasing groceries, cleaning supplies, etc. Steve has held this position with the Jones family for two years.
Last week, when Britta arrived home, there were workers in her home. The workers had demolished the entire kitchen and removed two interior walls and a significant amount of flooring throughout the house.
Apparently, Steve hired a renovation company to remodel the kitchen without Britta's knowledge. Britta never had a conversation with Steve concerning any renovations for the interior of the home.
The contract Steve signed on behalf of Britta Jones concerns interior renovations costing $225,000.00, payable in three installments, with the last payment due on the date renovations are complete. Britta received a bill for the first installment ($75,000.00). The renovation company refuses to continue the work until they receive payment, and they are threatening to place a lien on the house if Britta does not fulfill her obligations under the contract.
Please analyze the following issues using the IRAC method - you must state the applicablerule(s),analyzethe facts under the rule(s), and reach aconclusion.
Issue 1: What liability does Britta have under the contract with the renovation company, if any?
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin