An employer who promises to pay her secretary $1000 in consideration of the services the secretary had provided over the years and later breaches the promise is a. liable for payment of the $1000. b. liable only if the promise was in writing. c. not liable because the consideration is inadequate. d. not liable because the consideration is in the past. e. C and D are both correct.

d. not liable because the consideration is in the past.

Explanation:

In order for a valid contract to exist (and then be breached), consideration must be exchanged between the parties involved. E.g. if I just decide to give money to my school because of the good education I got there, it is considered a gift. The consideration from the school took place in the past, it is not exchanging anything with me right now.

The same happens here, the consideration which is the years served is part of the past, nothing is being exchanged in the present. This should be considered a gift from the employer.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.