Common Law as a Source of Law for Contracts

question 34

Multiple Choice

Common law as a source of law for contracts:

• A) comes primarily from federal law.
• B) comes exclusively from state law.
• C) comes primarily from French common law.
• D) comes primarily from state law.
• E) comes equally from state and federal law.

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Definitions:

Contribution Approach

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated into product and period costs for external reporting purposes.

External Reporting

The process of preparing and disclosing financial statements and other reports to entities outside of the corporation, such as investors and regulatory bodies.

Variable Cost

Costs that change in proportion to the level of production or business activity.

Unit Basis

A method of measurement or allocation in which operations or costs are expressed per single unit of production or activity.