Common Law Differs from the Uniform Law on Bills of Exchange

question 58

Multiple Choice

Common law differs from the Uniform Law on Bills of Exchange and Promissory Notes (ULB) in that the common law ________.

• A) does not allow external references for payment amount
• B) does not allow for variable interest rates
• C) allows nonmonetary modes of payments
• D) allows payments to be made in installments

---

Definitions:

Consumer Surplus

The split between the sum consumers would ideally pay for a good or service and the sum they actually end up paying.

Producer Surplus

The discrepancy between the price at which sellers are prepared to offer a product and the actual selling price they obtain.

Market Failure

The failure of a market to be efficient; when the individual pursuit of self-interest leads to bad results for society as a whole.

Market Power

The ability of a producer to raise prices.