Question:

Businesses should exercise great caution when taking clients out to informal environments for the

purpose of discussing business deals. As seen in the English case of Blue v Ashley, the Court was very

critical of the fact that two intelligent men of business, would go to a pub, become severely intoxicated

and purport to strike a multi-million dollar deal, on the basis of a verbal agreement and a handshake.

Essay question: Do you agree with the judge's criticism and ultimate ruling in the case?

Required: Explain the legal rules for creating a legally binding contract. You must refer to relevant law

each time you state a new legal rule. Then, in light of these rules, critically analyse the conduct of

these two businessmen which led to the judge's decision in the case. Tip: Use sub-headings to

separate your arguments for each element. In your conclusion, give a clear answer to the essay

question above and provide a brief summary of your main arguments.

Q2 - 10 marks

On 1 January, Manor Inn Pty Ltd bought a house for the purpose of turning it into a luxury rental

property. River Renovations Pty Ltd was hired to carry out all the building and construction work at a

contract price of $300,000. During negotiation, Manor Inn made it clear that all building work had to be

finished by the end of November of the same year, since it had already taken Christmas holiday

reservations totalling $50,000 starting on 1 December.

Due to poor planning by River Renovations, only half of the repairs were completed on 30 November,

and Manor Inn Pty Ltd was forced to cancel, and issue refunds for all its Christmas holiday bookings..

which in turn, caused Manor Inn to lose out on a business deal worth an estimated $750,000 with

Tourism New South Wales. River Renovations Pty Ltd was not aware of this deal at the time it signed the

contract.

Essay question: Is River Renovations Pty Ltd liable for either of Manor Inn Pty Ltd's financial losses?

Required: Discuss whether the completion date was a condition in the contract, and if so, the likely

consequences for this breach. Then, discuss whether River Renovations Pty Ltd should pay

compensation for the cancelled reservations; and/ or, whether it should pay compensation for the

loss of the deal with Tourism NSW. You must refer to law

Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from Its investments. Inventmont Al Initial investment $(340,000) Expected net cash flows in year! 180.000 146,000 93,000 QS 11-11 Net present value LO P3 Compute this Investment's net present value. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 9% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present valueQuestion Holp Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications. Fill in the blanks and then answer the following questions. (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Dollar $ of Total Dollar Hem Annual Demand CostUnit Volume Volume A2 10 120 1000 12 481000 5.65 CT 1500 67,800 T.94 D1 2000 14 1000 20 20.000 235 F3 25 G2 200 1500 300 000 35.20 12 000 141 15 1000 300 JB 2500 12.500 1.AT2.5 points Save Answer Maple Company has an Increase in purchases from specific vendors and an increase in raw materials Inventory for the items purchased from these vendors. Sales for the company have not Increased and are not forecast to increase, From this information an auditor might suspect an Increase in obsolete raw material inventory. () theft of raw material Inventory. Okickbacks from vendors. O) poor security over raw material Inventory. QUESTION 16 25 points Save Answer What evidence is appropriate to determine whether recorded purchase transactions are valid and the vendors charged the correct prices? () Purchase requisitions and accounts payable entries. Receiving reports and purchase orders. 3)Purchase requisitions and purchases orders. (Purchase orders and bid quotes. QUESTION 17 2.5 points Save Answer Matthew Corp. has changed from a system of recording time worked on clock cards to a computerized payroll system in which employees record time in and out with magnetic cards. The computerized system automatically updates all payroll records. Because of this change, ) a generalized computer audit plan must be used. part of the audit trail is altered. @ the potential for payroll-related fraud is diminished. transactions must be processed in batches, 2.6 points QUESTION 18Question 15 4 pts Markley Manufacturing calculated its predetermined overhead rate to be 120% of direct labor cost. During June, the company incurred $90,000 of factory labor costs, of which $85,000 is direct labor and $5,000 is indirect labor. Actual overhead incurred was $84,000. How much will Markley debit to Work in Process Inventory in June? O $102,000 O $174,000 O $108,000 O $198,000Question 22 (of 40) > 22. value: 2.50 points Problem 5-21 Present Value (LG3) Given a 6 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,300, $1,500, $1,500, and $1,800. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value References eBook & Resources