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Vesnalui [34]
3 years ago
13

D.v.g. (a minor) was injured in a one-car auto accident in hoover, alabama. the vehicle was covered by an insurance policy issue

d by nationwide mutual insurance co. stan brobston,
d.v.g.'s attorney, accepted nationwide's offer of $50,000 on


d.v.g.'s behalf. before the settlement could be submitted to an alabama state court for approval,


d.v.g. died from injuries received in a second, unrelated auto accident. nationwide argued that it was not bound to the settlement because a minor lacks the capacity to contract and cannot enter into a binding settlement without court approval. should nationwide be bound to the settlement? why or why not?
Business
1 answer:
diamong [38]3 years ago
6 0

Answer:

Yes, the court ruled in favor of D.V.G.'s mother, because of the principle that contracts entered by minors are not void, but voidable, and that they do have an effect on the parties, but if voided, they cannot be enforced.

In this case, the minor died before the contract was ratified by the court, but the minor hadn't voided the contract, so it was still good at the moment of his death. The minor had the chance of either approving or rejecting the contract while still living, and decided not to revoke it.

Explanation:

NATIONWIDE MUTUAL INSURANCE COMPANY and State Farm Mutual Automobile Insurance Company v. Barbara Walker WOOD, as administratrix of the estate of D.V.G., a minor, deceased, and K.C.T., a minor, by and through Earnest T., his father and next friend.  1111486. Decided: February 22, 2013

As this Court has stated, <em>“ ‘[i]t is well settled by the authorities that infants are not liable on any of their contracts, except for necessaries. With the exception, all other contracts of infants, whether executory or executed, may be avoided or ratified at the election of the infant.’ ”</em>

The final ruling was:

<em>"Under Alabama law, an insurance company is bound to a settlement agreement negotiated on behalf of an injured minor, even if that minor dies before the scheduling of the court hearing that all parties agreed was necessary to obtain approval of the settlement agreement. In accordance with the parties' understanding, such a hearing is still required, and the minor's death does not render that hearing impossible. We thus answer in the affirmative the question certified to this Court."</em>

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Answer:

$32,000

Explanation:

Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.

Cost of goods sold = Sales value - Gross Profit

Gross profit = Sales value - Direct costs - overhead costs

Gross profit per unit = $120 - ($50 + $ 20 + $10)

Gross profit per unit = $40 per unit

Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000

Budgeted sales value = Selling price per unit × Budgeted sales units

                                     = $120 × 400 chairs = $48000

Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value

= $48000 - $16000 = $32000

<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.

5 0
3 years ago
You recently purchased a stock that is expected to earn 10 percent in a booming economy, 4 percent in a normal economy, and lose
serious [3.7K]

Answer:

b. 3.70 percent

Explanation:

Expected rate of return of a stock, given probabilities,  is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.

Expected rate of return = SUM (probability *return)

Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%

Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%

Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%

Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;

= 1.5% + 2.8% -0.6%

= 3.7%

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4 0
3 years ago
Stryker Industries received an offer from an exporter for 27,000 units of product at $17 per unit. The acceptance of the offer w
Aloiza [94]

Answer:

$162,000

Explanation:

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Sales (27,000 x $17)                                           $459,000

Less Variable Costs of the offer :

Variable manufacturing costs (27,000 x $11)  ($297,000)

Net Income (Loss)                                               $162,000

therefore,

the amount of income  from the acceptance of the offer is $162,000

7 0
3 years ago
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klasskru [66]

Answer:

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An intermediate good produces a final good for consumption.  Intermediate goods are used for investment to generate more resources that can be consumed in the future.  A final good, in most cases, does not require further processing.  It is consumed immediately by the buyer.

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Answer:

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