BUSINESS LAW
17th Edition
ISBN: 9780357007594
Author: Mann
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 12CP
Summary Introduction
Case summary:
Person D is considered as a beneficiary of a life insurance issued by company A on the life of person C’s husband J. The policy framed against the person J’s death and disability conditions. After certain years Person J and C were separated. Then person J stats to travel lengthily, hence person C could not able to track person J’s state of health and whereabouts. Even though person J continued premium payments. After the death of person J person C requested to company A to pay the benefit of death.
To discuss: The decisions regarding death payments.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
John Hobelsberger lived alone on his farm near Kranzburg, South Dakota. A grandniece, Phyllis Raml, and her husband, Ralph, lived on and operated a farm about two miles away. Hobelsberger and the Ramls had a friendly and cordial relationship. The Ramls visited him rather frequently and largely cared for him during his later years. Hobelsberger was hospitalized on October 23, and his condition was diagnosed as intermittent cerebral insufficiency. During his hospitalization, he requested that the Ramls send an attorney to see him about the preparation of a will. Thomas Green, an attorney, interviewed the testator on or about November 10 and prepared a will in compliance with his instructions. Hobelsberger was transferred to a nursing home on November 19. On November 22, Green and a secretary went to the nursing home and witnessed his signing of the will. Hobelsberger was then eighty years old. He subscribed the will with a mark because he was having trouble with his hands. Hobelsberger…
Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid.
Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres “for Brandt.” Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel…
In 2012, Angela took out a $15,000 loan against the cash surrender value of her whole life insurance policy.
The funds were required to help pay for remodeling and redecorating her home. As a consequences of taking
out the loan Angela had to report $3,000 of policy gain in 2014. She repaid $5,000 of the loan at the end of
2015, as well as paying the $600 of loan interest due for the year.
What were the tax consequences to Angela and the policy as a result of the 2015 payments?
A. She will be able to deduct $5,600 from her taxable income for 2015 ad the ACB of the policy will increased
by $2,000.
B. She will be able to deduct $3,000 from her taxable income for 2015 and the ACB of the policy will increase
by $2,600.
C. She will not be able to claim any deduction from her taxable income for 2015 and the ACB of the policy will
increase by $5,650.
D. She will be able to deduct $3,600 from her taxable income for 2015 and the ACB of the policy will increase
by $2,000
Chapter 11 Solutions
BUSINESS LAW
Ch. 11 - Prob. 1COCh. 11 - Prob. 2COCh. 11 - Prob. 3COCh. 11 - Prob. 4COCh. 11 - Prob. 5COCh. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5Q
Ch. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - Prob. 8QCh. 11 - Prob. 9QCh. 11 - Prob. 10CPCh. 11 - Prob. 11CPCh. 11 - Prob. 12CPCh. 11 - Prob. 13CPCh. 11 - Prob. 14CPCh. 11 - Prob. 15CPCh. 11 - Prob. 16CPCh. 11 - Prob. 17CPCh. 11 - Prob. 18CPCh. 11 - Prob. 19CPCh. 11 - Prob. 20CPCh. 11 - Prob. 21CPCh. 11 - Prob. 22CPCh. 11 - Prob. 23CPCh. 11 - Prob. 1TSCh. 11 - Prob. 2TSCh. 11 - Prob. 3TS
Knowledge Booster
Similar questions
- John Torniero was employed by Micheals Jewelers, Inc. (Micheals). During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds. Over a period of several months, Torniero sold individual pieces of the stolen jewelry to G&W Watch and Jewelry Corporation (G&W). G&W had no knowledge of how Torniero obtained the jewels. Torniero was arrested when Micheals discovered the thefts. After Torniero admitted that he had sold the stolen jewelry to G&W, Micheals attempted to recover it from G&W. G&W claimed title to the jewelry as a good faith purchaser for value. Micheals challenged G&W’s claim to title in court. Who wins? Explain your reasoning.arrow_forwardAn intruder entered through a window and raped McCutchen in her apartment. MCutchen sued the landlord, Ten Associates, for failure to provide adequate security and failure to warn her of the risk of intrusion through the window. Ten Associates claimed that they had no way of anticipating an intruder. Evidence was introduced that revealed the landlord knew or should have known of a prior rape and numerous intrusions through apartment windows. Does it appear that Ten Associates was negligent in providing for the security of tenants?arrow_forwardJoseph M. Billy was an employee of the USM Corporation (USM), a publicly held corporation. Billy was at work when a 4,600-pound ram from a vertical boring mill broke loose and crushed him to death. Billy’s widow sued, alleging that the accident was caused by certain defects in the manufacture and design of the vertical boring mill and the two moving parts directly involved in the accident, a metal lifting arm and the 4,600-pound ram. If Mrs. Billy’s suit is successful, can the shareholders of USM be held personally liable for any judgment against USM? Explain your answer.arrow_forward
- Peter has been in practise as a doctor in Sydney since 1982. In 1984, he purchased a 25-hectares farm near Batlow, which is considered the premium apple growing region in Australia. The purchase price for the farm was $700,000. Peter borrowed the funds to purchase the farm. At the time of purchase the farm was used to grow apples and Peter continued to grow apples on the farm, employing a full-time manager for this purpose.As a result of the Black Summer bushfires in 2019/2020 however, most of the apple trees and packing sheds on Peter’s farm were destroyed. Peter decided not to replant apple trees. Instead, he decided to grow hazelnuts and cherries because he believed these would provide a higher yield than apples given current market prices.In late 2021, Peter arranged with his farm manager to oversee the removal of all remaining and burned-out apple trees on the farm and to prepare the soil to make it suitable for planting 200 cherry trees and 100 hazelnut trees. It was estimated…arrow_forwardPeter Andrus owned an apartment building that he had insured under a fire insurance policy sold by J.C. Durick Insurance (Durick). Two months prior to the expiration of the policy, Durick notified Andrus that the building should be insured for $48,000 (or 80 percent of the building’s value), as required by the insurance company. Andrus replied that (1) he wanted insurance to match the amount of the outstanding mortgage on the building (i.e., $24,000) and (2) if Durick could not sell this insurance, he would go elsewhere. Durick sent a new insurance policy in the face amount of $48,000 with the notation that the policy was automatically accepted unless Andrus notified him to the contrary. Andrus did not reply. However, he did not pay the premiums on the policy. Durick sued Andrus to recover these premiums. Discuss who wins? Provide justification for your argument/position.arrow_forwardunder the NCC, what are the different acts or omissions of the obligor or debtor which will result in the breach of the obligation for which he can be held liable for damages?arrow_forward
- David E. Ross, his two brothers, and their families operated and owned the entire stock of five businesses. Ross had three children: Rod, David II, and Betsy. David II and Betsy were not involved in the operation of the companies, but Rod began working for one of the firms, Equitable Life and Casualty Insurance Company, in 2007. Between 2009 and 2013, the elder Ross informed a number of persons of his desire to reward Rod for his work with Equitable Life by giving him stock in addition to the stock he would inherit. He subsequently executed several stock transfers to Rod, representing shares in various family businesses, which were reflected by appropriate entries on the corporate books. Certificates were issued in Rod’s name and placed in an envelope identified with the name Rod Ross, but they were kept with the other family stock certificates in an office safe to which Rod did not have access. In all, one-fourth of the stock holdings of David E. Ross were transferred to Rod in this…arrow_forwardIvan, an informant who had often proven unreliable, told Alan, a detective, that Debbie had offered Ivan $2,000 to find a hit man to kill her husband, Carl. On the basis of that information, Alan obtained a warrant for Debbie’s arrest. In the affidavit in support of the warrant, Alan described Ivan as “a reliable informant” even though Alan knew that Ivan was unreliable. Alan gave the arrest warrant to Bob, an undercover police officer, and told Bob to contact Debbie and pretend to be a hit man. Bob called Debbie, told her he was a friend of Ivan and could do the killing, and arranged to meet her at a neighborhood bar. When the two met, the following conversation ensued: Bob: I understand you are looking for someone to kill your husband. Debbie: I was, but I now think it’s too risky. I’ve changed my mind. Bob: That’s silly. It’s not risky at all. I’ll do it for $5,000 and you can set up an airtight alibi. Debbie: That’s not a bad price. Let me think about it. Bob: It’s now or never.…arrow_forwardJohn Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. He filed a lawsuit against Doug Reynolds, the owner of Eastview Apartments, asking for damages of $1,500,000. John claims that the roof had rotten sections and that his fall could have been prevented if Mr. Reynolds had told Manhattan Construction about the problem. Mr. Reynolds notified his insurance company, Allied Insurance, of the lawsuit. Allied must defend Mr. Reynolds and decide what action to take regarding the lawsuit.Some depositions and a series of discussions took place between both sides. As a result, John Campbell offered to accept a settlement of $750,000. Thus, one option is for Allied to pay John $750,000 to settle the claim. Allied is also considering making John a counteroffer of $400,000 in the hope that he will accept a lesser amount to avoid the time and cost of going to trial.…arrow_forward
- William E. Story agreed to pay his nephew, William E. Story II, a large sum of money (for purposes of this hypothetical, $500,000 in today's dollars) "if he would refrain from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he should come to be 21 years of age." William II had been using tobacco and occasionally drank liquor but refrained from using these stimulants over several years until he was 21 and also lived up to the other requirements of his uncle's offer. Just after William II's 21st birthday, Story acknowledged that William II had fulfilled his part of the bargain and advised that the money would be invested for him with interest. Story died, and his executor, Sidway, refused to pay William II because he believed the contract between Story and William II was without consideration. Sidway asserted that Story received no benefit from William II's performance and William II suffered no detriment (in fact, by his refraining from the use…arrow_forwardPetty rented an apartment in a building owned by Clark. Jason was coming to visit Petty. Jason slipped and fell down the outside steps, which had not been cleared of ice and snow. Who is liable for Jason’s injuries?arrow_forwardPrior to her death in 2023, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests. Sole ownership: Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries A portfolio of stocks, bonds, and CDs valued at $8,000,000 Personal residence with a fair market value of $500,000 Joint ownership: With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000 With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000. Which one of these amounts, if any, most closely approximates Elfrieda's estate tax…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON