In February 2001, a homeowner hired Jimmy Smith, a contractor claiming to employ a crew of thirty

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In February 2001, a homeowner hired Jimmy Smith, a contractor claiming to employ a crew of thirty workers, to build a garage. The homeowner paid Smith $7,950 and agreed to make additional payments as needed to complete the project, up to $15,900. Smith promised to start the next day and finish within eight weeks. Nearly a month passed with no work, while Smith lied to the homeowner that materials were on “back order.”During a second month, footings were created for the foundation, and a subcontractor poured the concrete slab, but Smith did not return the homeowner’s phone calls. After eight weeks, the homeowner confronted Smith, who promised to complete the job, worked on the site that day until lunch, and never returned. Three months later, the homeowner again confronted Smith, who promised to “pay [him] off” later that day but did not do so. In March 2002, the state of Georgia filed criminal charges against Smith. While his trial was pending, he promised to pay the homeowner “next week” but again failed to refund any of the funds paid. The value of the labor performed before Smith abandoned the project was between $800 and $1,000, the value of the materials was $367, and the subcontractor was paid $2,270. Did Smith commit larceny? Explain.

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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