A Business Contract Includes a Term Saying That a Manufacturer

question 8

Multiple Choice

A business contract includes a term saying that a manufacturer will use "smooth-grained sand" in a construction project "if this quality is available.The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials.This is an example of the court introducing an implied term based on

• A)statutory requirements.
• B)previous dealings between the parties.
• C)business efficacy.
• D)principles of statutory interpretation.
• E)the nature of the trade.

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Definitions:

Return On Investment

A measure of the profitability of an investment relative to its costs, commonly expressed as a percentage.

Operating Assets

Assets used by a company to generate revenue, typically including property, plant, and equipment, but excluding investments and inventories.

Net Operating Income

The profit generated from a company's everyday business operations, indicating how much revenue exceeds both operating costs and overhead.

Residual Income

The income that remains after deducting all required expenses and cost of capital from operating income.