With Respect to Sale of Goods,the Doctrine of Caveat Emptor

question 48

Multiple Choice

With respect to sale of goods,the doctrine of caveat emptor offers buyers the right to rescind the contracts in situations where

• A)both a dominant and subservient party exist.
• B)there is a clear title in the sale of goods.
• C)one party is in a vastly superior position of knowledge with respect to some matter that is of vital importance to the other party.
• D)there is an unconscionable transfer of goods.
• E)there is a failure to disclose a problem with the ownership of goods.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.

Total Variable Cost Curve

A graph that shows the relationship between total variable cost and the level of a firm’s output.

Factor Prices

The prices of the inputs used in the production process, such as labor, capital, and land.

Output

The total amount of goods and services produced by a business, industry, or economy.