A Agrees to Buy a Share in B's Invention for a Certain

question 93

Multiple Choice

A agrees to buy a share in B's invention for a certain sum on the condition that C first approves the invention.However,the written contract makes no reference to C's approval.C never gives his approval.B now sues A for the purchase price.In this situation

• A)whether or not C gives his approval is not relevant to the main contract between A and B.
• B)C's approval is a condition precedent that must be met before there is a contract between A and B
• C)the parol evidence rule applies to exclude the condition of C's approval.
• D)C's approval would be a warrantee used to overcome the parol evidence rule.
• E)A cannot rely on C's approval as a condition to the contract with B,because C is not a party to the contract.

Understand the role and principles of Total Quality Management (TQM) strategies.

Acknowledge the importance of employee involvement in quality improvement processes.

Get familiar with international and national quality standards and awards.

Learn about process improvement methodologies like Six Sigma and benchmarking.

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Definitions:

Present Value Factors

The numerical factors used in calculating the present value of future cash flows, based on a specific discount rate and time period.

Sunk Costs

Costs that have been incurred in the past, cannot be recouped, and are not relevant to future decisions.

Capital Investment Analysis

A financial analysis method used to evaluate the potential profits and risks of investment projects.

Federal Income Tax Ramifications

These are the effects or consequences that federal tax laws have on individuals, investments, and business transactions.