Which of the following is an example of a variable consideration?
A) John is expected to receive $100 for his tutoring services provided that he keeps track of his hours.
B) Melody's Piano will get paid for the 50 pianos sold provided that the pianos are non-defective after the customer takes control.
C) Cantankerous Computers gets paid a base amount for every repair plus an additional hourly fee of $10.
D) Excellent Electronics has a 10% mail-in rebate program for the Model X-001 speaker system. The company sold $10,000 worth of systems and believes there is a 50% chance that rebates will be redeemed.

Question

Quizplus · Accepted Answer

The Excellent Electronics' example is correct because it describes consideration that has uncertainty that will be resolved by some future event. The example of John's tutoring services is not correct because it simply requires accurate records in order to be paid a certain fee. The Melody's Piano example is not correct because it describes a quality assurance warranty, which does not change consideration expected to be received. The Cantankerous Computers example is not correct because it indicates a fee that is certain given the number of hours of service provided.

Which of the Following Is an Example of a Variable