How much does Walters owe Erlich for the service of preparing the protest?
A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and adjust it based on factors such as your driving record or number of accidents. However, health insurers have generally evaluated their insureds health only once, at the outset, when issuing a policy.The reevaluation of health and premiums was a practice that ended in the 1950s because the insurers feared regulators would impose limitations on premiums. At least one health insurer, however, has begun to evaluate the health of its insureds annually and to adjust policy premiums accordingly. Even without examination of insureds, some insurers have increased the insureds premiums based simply on the nature of their claims for the year and the possibility that more claims will arise.
Those who are healthy are in favor of this annual review. Perceiving themselves as the equivalent of good drivers, they want to pay less when they stay healthy. The health discount is, in their minds, the equivalent of the safe driver discount. However, those who are less healthy argue that people buy insurance so that it will be there when they need it, and the coverage should apply without regard to claims. Consider the ethical issues in this type of pricing for health insurance. (Post is due before 11PM Friday.)
Blake, who had been diagnosed with Alzheimers disease, sold and conveyed two acres of land to Khron, who paid $14,000.At the time of the sale and conveyance, Blake appeared to be competent and Khron had no knowledge of Blakes illness.One year later, Blake died.During the prior year, Blake had spent the $14,000 received from Khron.The executrix of Blakes estate sued Khron to set aside the deed and recover the land conveyed to Khron.The executrix made no offer to pay $14,000 to Khron.Will the executrix succeed?Suppose it was shown that Khron knew about Blakes condition at the time of the sale and conveyance of the land.Would this affect your answer?(Post is due before 11 PM Thursday.)
Leonetti offered to sell Salazar her car and told Salazar that the car had been driven only 25,000 miles and had never been in an accident.Salazar hired Cavanaugh, a mechanic, to appraise the condition of the car, and Cavanaugh said that the car probably had more than 25,000 miles on it and probably had been in an accident.In spite of this information, Salazar still thought the car would be a good buy for the price, so he purchased it.Later when the car developed numerous mechanical problems, Salazar sought to rescind the contract on the basis of Leonettis fraudulent misrepresentation of the autos condition.Will Salazar be able to rescind his contract?Explain.(Post is due before 11 PM Friday.)
<pclass=”msonormal”>Walters, a business owner, filed tax returns for 2001, 2002, and 2003 using the cash basis. In 2004, Walters hired Erlich, a CPA, to prepare his income tax for 2004 using the accrual basis. While preparing the 2004 return, Erlich examined the prior years returns.Based on Erlichs suggestions, Erlich prepared revised returns for the prior years, and Walters submitted these to the Internal Revenue Service (IRS), claiming an $18,000 refund. Instead of receiving the refund, the IRS claimed Walters owed $134,000 in unpaid taxes and fines. Erlich told Walters that the IRS was mistaken and that he could clean up the simple problem for a fee of $1000.
After granting several extensions, the IRS notified Walters that Monday, October 5, 2008 was the deadline for filing a protest to the proposed assessment. On Saturday, October 3, Erlich called Walters to his office to sign the protest. When Walters arrived, Erlich produced a written contract with a fee agreement whereby Erlich was to receive $1000 plus 8 percent of any monies saved on the assessment. When Walters refused to sign the new fee agreement, Erlich told him that the protest had to be in the mail that afternoon to reach the IRS by Monday and that if the protest were not filed on time Walters would be liable for the $134,000 plus additional fines that had accrued since 2005. Walters signed the fee agreement, and the protest was filed on time. After reviewing the protest, the IRS reduced the assessment to $21,000. Erlich sent Walters a bill for $10,040. Walters sued to have the new fee arrangement rescinded. What legal theory will Walters argue? Who wins? How much does Walters owe Erlich for the service of preparing the protest? (Post is due before 11 PM Saturday.)