13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston. However,Alston is authorized only to transport goods between Milwaukee and St. Louis. Sykes Transport Company hasthe authority to transport goods between St. Louis and Houston. Therefore, Alston agrees to turn its trailerover to Sykes Transport Company in St. Louis, and Sykes will deliver it to Houston. In the trailer interchangeagreement, Sykes assumes liability for any physical damage to the trailer. Unfortunately, the trailer wasdestroyed in a collision just outside Memphis. Sykes does not believe its driver's actions caused the collision.The trailer interchange coverage in Sykes's motor carrier policy includes only comprehensive coverage. Howshould the trailer interchange coverage of Sykes's motor carrier policy respond?Oa. The insurer should deny the claim because collision is not a covered peril.Ob. The insurer should defend Sykes and pay the claim if Syks is found liable.Oc. The insurer should deny the claim only if the collision was caused by Sykes's negligence.od. The insurer should pay the claim because Sykes assumed legal liability by contract.

Option D is correct because the trailer interchange agreement between Alston Trucking and Sykes…

Answered: 13. Alston Trucking has a contract to…

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section: Chapter Questions

Problem 5QAP

See similar textbooks

Similar questions

Customer X enters into a contract with Supplier Y for the use of a specific car for one (1) year. The car shall be modified according to the specification of Customer X . Customer x shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement power of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide a brief explanation. Make it brief and concise. Explain it in a simple way. 3 sentences is enough. PLEASE NO PLAGIARISM I WILL REPORT YOU!
Customer X enters into a contract with Supplier Y for the use of a specific car for one year. The car shall be modified according to the specifications of Customer X. Customer X shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement car of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than the default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide brief explanations.
A wonderland tents and furniture LLC is involved in supplying tents and furniture items to customers for conducting events and celebrations. The company received a claim from customer for OMR. 35,000 as damages because some furniture were not delivered in time for a graduation ceremony. The company admits the delay but disputes the amount of the claim pointing out that alternative furniture arrangement for the event cost no more than OMR. 8,000. How would you advise the wonderland tents and furniture company to treat the claim when finalizing the financial statements for the year. a- Account for the best estimate as liability b- Ignore the claim c- Record a liability of OMR. 35,000 d- Record a liability of OMR. 8,000
AAA Ltd sells and delivers goods to XXX Ltd on 13 March. Both parties agree that XXX Ltd will hold the goods on consignment to be sold to third parties. XXX Ltd is not required to pay AAA Ltd for the goods until they are sold to a third party. Which of the following statements is incorrect? a. AAA Ltd retains the risks and rewards of ownership of the goods after delivery to XXX Ltd. b. At the time of delivery of the goods to XXX Ltd there is no probability that future economic benefits will flow to AAA Ltd. c. AAA Ltd does not recognise any revenue until XXX Ltd has on-sold goods to a third party. d. AAA Ltd recognises revenue on 13 March for the sale of goods to XXX Ltd.
Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes that it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells one of its patents. The history of Fields patent number 758-6002-1A is as follows. Date Activity Cos 2011 – 2012 Research conducted to develop precipitator $373,000 Jan. 3, 2013 Design and construction of a prototype (capitalization criteria not yet met) 85,500 Mar. 15, 2013…
This assignment is based on the case, Seal Polymer Industries v. Med-Express, Inc., 725 S.E.2d 5 (N.C.App. 2012)]. I this case, Seal Polymer Industries sold two freight containers of latex gloves to Med-Express, Inc., a company based in North Carolina. When Med-Express failed to pay the $104,000 owed for the gloves, Seal Polymer sued in an Illinois court and obtained a judgment against Med-Express. Med-Express argued that it did not have minimum contacts with Illinois and therefore the Illinois judgment based on personal jurisdiction was invalid. Med-Express stated that it was incorporated under North Carolina law, had its principal place of business in North Carolina, and therefore had no minimum contacts with Illinois. Was this statement alone sufficient to prevent the Illinois judgment from being collected against Med-Express in North Carolina? Why, or why not? Support your answer by citing authority from your reading assignment.
The following transactions were entered into by Keppel Corp. for the current year: Sold goods to Shang Co. amounting to P 200,000. In the sales contract, there is a clause that the seller has an obligation for unsatisfactory performance, which is not governed by normal warranty provisions; Shipped machinery invoiced at P 300,000 to a destination specified by the buyer. A significant part of the transaction involves installation that has not been fulfilled by Keppel Corp.; Sold at P 500,000 a machinery to Aboitiz Corp, where Aboitiz has the right to cancel the purchases for a reason not specified in the contract of sale and the seller is uncertain about the outcome. How much should be recognized by Keppel Corp as revenue from the above transactions? * A. P 0 B. P 1, 000, 000 C. P 700, 000 D. P 500, 000
Right of Inspection. Jessie Rodriquez offered to deliver two trade-in vehicles—a 2003 Mitsubishi Montero and a 2002 Chevrolet Silverado pickup—to Dickey Chevrolet Buick, Inc., in exchange for a 2006 Silverado pickup. Dickey agreed. The parties negotiated a price, including a value for the trade-in vehicles, plus cash. Rodriquez paid the cash and took the Silverado. On inspecting the trade-in vehicles, however, Dickey found that they had little value. The dealer repossessed the 2006 Silverado. Did the dealership have the right to inspect the goods and reject them when it did? Why or why not?
Headland Corporation wishes to exchange a machine used in its operations. Headland has received the following offers from other companies in the industry. 1. 2. 3. Sage Company offered to exchange a similar machine plus $28,520. (The exchange has commercial substance for both parties.) Pronghorn Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Stellar Company offered to exchange a similar machine, but wanted $3,720 in addition to Headland's machine. (The exchange has commercial substance for both parties.) In addition, Headland contacted Pearl Corporation, a dealer in machines. To obtain a new machine, Headland must pay $115,320 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Headland $198,400 74,400 114,080 Sage $148,800 55,800 85,560 Pronghorn Stellar $188,480 $198,400 88,040 114,080 93,000 117,800 Pearl $161,200 -0- 229,400
ABC Corp. is engaged in the manufacture and sale of facemasks. To increase sales, the marketing arm of the Company entered into consignment agreements with third parties. Inday. a consignee received the facemasks on March 1, 2021. If unsold, VAT shall accrue on: O April 29, 2021 O May 1, 2021 O April 30, 2021 O No VAT shall accrue
A telecommunications operator (BarleyCo) enters into an indefeasible rights of use (IRU) contract with TomCo (the incumbent telecommunications operator) for a dark fibre route between two cities. The agreement is for a term of 20 years, which is the expected service life of the cable. The arrangement specifies exclusive use of a distinct fibre within the TomCo fibre cable, and BarleyCo is responsible for the installation of transmission equipment in TomCo’s buildings in order to light the fibre. TomCo has the right to swap BarleyCo over to an alternative fibre, but only for reasons of repair, maintenance or malfunction, in which case it must compensate BarleyCo for financial loss. In addition to a single up-front payment, the contract provides for TomCo to charge BarleyCo for a share of maintenance costs and for space, power and cooling within the TomCo buildings. BarleyCo is responsible for the installation and maintenance of its transmission equipment and is free to upgrade that…
Bramble's Steelers Inc. (BSI) is a steel manufacturing company located in Ontario. On November 1, 2021, BSI acquired land on which it constructed a facility for steel manufacturing purposes. Since its manufacturing process produces excessive waste, the government of Ontario has imposed a requirement for BSI to clean up property. As part of its agreement with the province of Ontario, BSI is allowed to operate on this site for only 15 years after which time BSI estimates it will need to incur $2,000,000 to clean up the site. Bramble went ahead with the construction of the building and recognized the asset retirement obligation at that time. The company's discount rate is 4% and BSI reports under IFRS with a December 31 year-end. (a) What adjusting journal entry should BSI have made to initially recognize the ARO under IFRS? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 0.52750 and round final answer to 0 decimal places, e.g. 5,275. Credit…

SEE MORE QUESTIONS

Recommended textbooks for you

Business Its Legal Ethical & Global Environment

Accounting

ISBN:

9781305224414

Author:

JENNINGS

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Business Its Legal Ethical & Global Environment

Accounting

ISBN:

9781305224414

Author:

JENNINGS

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS