Which of the Following Is True of Undue Influence in Entering

question 22

Multiple Choice

Which of the following is true of undue influence in entering into contracts?

• A) Undue influence need not require the overcoming of the innocent party's free will.
• B) Undue influence is not grounds for prosecution, as the innocent party has complete freedom to evaluate the terms of the contract.
• C) A contract that is entered into because of undue influence is not voidable.
• D) A fiduciary or confidential relationship must have existed between the parties for undue influence to be proven.

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Definitions:

Activity Base

A measure used in costing that is a significant and quantifiable activity or event, determining the cost incurred by an activity.

Level Of Activity

A measure of the volume of production or work that a business operates at, which can affect costs and efficiency.

Variable Costs

Expenses that vary directly with the amount of production or the degree of business operations.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent or salaries.