Broker Gerry sold a property to Sarah that was marketed "as is." Broker Gerry knew that the property's plumbing was in a major state of disrepair but did not tell Sarah. The problem with the plumbing is not apparent to an ordinary, prudent person. If Sarah sued the seller for damages, the court action would likely be:
a. successful since the duty to disclose a material fact cannot be avoided by an "as is" provision under the stated circumstances.
b. successful since "as is" refers only to obvious defects.
c. unsuccessful since the buyer agreed to buy the property in its current condition.
d. unsuccessful since the "as is" status of the sale shows there is a mutual understanding of possible defects.
Answer: a. successful since the duty to disclose a material fact cannot be avoided by an "as is" provision under the stated circumstances.
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At a firm's quarterly dividend meeting held on December 5, the directors declared a $1.50 per share cash dividend to be paid to the holders of record on Monday, January 1
Before the dividend was declared, the firm's accumulated retained earnings balance and cash balance were $1,280,000 and $30,000 respectively. The firm has 10,000 shares of common stock outstanding. On January 2, the cash, dividends payable, and retained earnings accounts had balances of ________. A) $15,000, $0, and $1,265,000, respectively B) $30,000, $15,000, and $1,280,000, respectively C) $30,000, $0, and $1,265,000, respectively D) $15,000, $0, and $1,280,000, respectively
The illusion of transparency refers to what belief?
a. The faulty belief that our thoughts and attitudes are more visible (transparent) than is actually the case. b. The faulty belief that we are more ethical and honest than we really are. c. The faulty belief that we can read others' minds. d. The faulty belief that our behaviors are in greater alignment with our attitudes than is actually the case.