Question

In: Accounting

Fayette Country Club hired Bend Tarp and Liner to install a liner in a pond on...

Fayette Country Club hired Bend Tarp and Liner to install a liner in a pond on its golf course. A day after the liner had been installed, the club pro discovered that a section of the pond wall had collapsed. As a result, the pond liner had torn and water escaped from the pond. The club pro believed that the water loss was due to the torn liner and Bend Tarp and Liner argued that the collapse of the wall was responsible for the tear. Fayette refused to pay Bend unless Bend agreed to repair the lining. Bend refused. Can Bend file a construction lien (mechanic’s lien) against the country club? Explain.

Solutions

Expert Solution

As per the facts of the case Fayette Country Club hired Bend Tarp and Liner to specifically install a liner in a pond. Their main job is limited to install the liner into the pond and whatever happens after the installation of the liner is not concerned to them. The club pro discovered that a section of pond wall had collapsed because of which the liner was torn and water escaped from the pond. Bend Tarp and Liner had nothing to do with the pond wall and had successfully finished their job once the liner was installed in the pond.

Once the job is successfully executed, it is the responsibility of the contractor to pay the workers as per the agreed terms and remuneration. The contractor cannot refuse the payment unless a specific clause of the job is not fulfilled. In the given case the workers were supposed to just install a liner in the pond and they have executed the same successfully. The wall of the pond collapsed the next day without any fault of the workers or due to installation of the liner. Therefore, Fayette cannot refuse the payment to the workers and they can file a construction lien against the country club.


Related Solutions

Business Decision Case The Reserve Club is a traditional private golf and country club that has...
Business Decision Case The Reserve Club is a traditional private golf and country club that has three different categories of memberships: golf, tennis & swimming, and social. Golf members have access to all amenities and programs in the Club, Tennis & Swimming members have access to all amenities and programs except use of the golf course, and Social members have access to only the social activities of the club, excluding golf, tennis, and swimming. All members have clubhouse privileges, including...
OU Country Club is estimated yearly demand schedule for each customer’s in the golf club is...
OU Country Club is estimated yearly demand schedule for each customer’s in the golf club is P = 100-2Q with a constant marginal cost of 20 per customer per play and a yearly fixed cost of $500,000. The marketing manager projected that there are 500 identical customers. They are going to use a two-part pricing strategy, where F is the country club membership and r is a usage charge per customer. (10 points) a) What is the optimal F and...
Question 1 (10 marks): Suppose country A and country B are deciding whether to install new...
Question 1 : Suppose country A and country B are deciding whether to install new incinerator to reduce regional air pollution or not. The new incinerators can reduce the domestic pollution and the cross-border pollution that affects both countries. To quantify the analysis, suppose that if country A installs the new incinerator, it generates benefit of $1 million from reducing domestic pollution and of $1 million from reducing cross-border pollution. But, the benefit from reducing cross-border pollution will be equally...
Alex, who is single and works as a caddie at a country club, ask you to...
Alex, who is single and works as a caddie at a country club, ask you to help her calculate her tax liability.  She tells you about the following transactions:  She earned $32,000 in wages from the country club, $1,000 of interest income from a savings account. In addition, Alex had a $5,000 L/T capital loss carry forward and gained $20,000 on the sale of a stock. Alex purchased the shares on insider information (an illegal activity) and owned for stock 5 days....
The following is an Excel question: You have been hired by Club 2010 to design and...
The following is an Excel question: You have been hired by Club 2010 to design and implement a worksheet for the "greeter" at the door to use to determine whether people are old enough to enter. Create a model that allows the user to enter his/her birth date. The model should compute the user’s age and in another cell, it should appear either "Welcome" if the person is at least 21 years old as of today, or "Sorry, you are...
A company has hired you as a contractor to install their backbone to connect four 100base-T...
A company has hired you as a contractor to install their backbone to connect four 100base-T Ethernet LANs (each of which uses a 24port hub) for connection to the Internet. Let’s assume Cat5, Cat5e, Cat6, and optical fiber cables all have a fixed cost per circuit to purchase and install of $50, $60, $120, and $300, respectively (disregard the installation distance of the cables). For this assignment, consider how you would design an efficient backbone and create a total cost...
A country club has a membership of 500 members and operates facilities that include a swimming...
A country club has a membership of 500 members and operates facilities that include a swimming pool and a gymnasium. The club president would like to know how many members regularly use the facilities. A survey of the members indicates that 70% regularly use the swimming pool (S), 50% regularly use the gymnasium (G), and 5% use neither of these facilities regularly. Calculate the probability of the club members who use the facilities of the swimming pool and gymnasium P(S∩G).           ...
1. A country club wants to inspect the effects of a new marketing campaign that attempts...
1. A country club wants to inspect the effects of a new marketing campaign that attempts to get more people within the community to become members. In many communities, when people buy a house in the area, they receive a “Welcome Wagon” gift basket containing coupons to local restaurants. The idea of the marketing campaign is to include a free two month membership to the country club in the gift basket with the hope that once “new” residents try the...
The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000,...
The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $145,000. Because of this information, in the short run, the Brookside Racquet Club should a. sh ut down. b. exit the industry. c. stay open because shutting down would be more expensive. d. stay open because the firm is making an economic profit.
The following account balances are taken from the books of Country Club on 31 December 2017....
The following account balances are taken from the books of Country Club on 31 December 2017. Revenues and expenses are for the year ended 31 December 2017. The retained profits balance is as at 1 January 2017. Account Value ($) Accounts Receivable 29826 Accounts Payable 25242 Promotional Expense 54245 Cash 5420.0 Food Sales 15215 Cost of food sold 13080 Dividend payments 8138 Electricity Expense 6385 Furniture and fittings 42,500 Inventory 22,500 Land and buildings 75,000 Bank loan payable 43,750 Equipment...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT