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Read the following scenario and then answer the questions that follow. A retail company has hired XYZ Web design firm as an independent contractor to

Read the following scenario and then answer the questions that follow. A retail company has hired XYZ Web design firm as an independent contractor to design and build an e-commerce website. The retailer paid $25,000 of the contract fee up front to begin the work. The owner of the design company assures the retailer that the work is on schedule and will be completed on time; but as of a week before the due date, the retailer has yet to see any preliminary designs. The retailer schedules a meeting at the design office to check on the status of the project. While waiting for the meeting, the retailer overhears employees talking about the impending closure of their design business. She also hears that the programmer assigned to her project has not been paid and there is no money to pay him. During the meeting, the owner of the design firm says nothing about a closure. Instead he assures the retailer that the project will be completed as planned. The retailer suspects that the designer is not being truthful and worries that if the business closes and she has not received the designs and software for the project, her company will

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