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James Has an Old Car for Sale

question 21

Essay

James has an old car for sale.Betty views the car and in response to a question about the age of the car,James replies,"I think it is a 1929 Ford." Betty purchases the car,but the written contract makes no mention of the year of the car.Actually,the car is a 1932 Ford.What remedy does Betty have? What defenses are available to James?


Definitions:

Present Value

Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, discounting future cash flows to the present.

Fair Value Hedge

A type of hedging strategy used to mitigate risk by adjusting the fair value of a hedged asset or liability to reflect changes in market conditions.

Foreign Exchange Gain

A gain resulting from changes in exchange rates between currencies, affecting the value of foreign currency-denominated assets or liabilities.

Consolidated Income Statement

A consolidated income statement presents the financial performance of a parent company and its subsidiaries as one combined entity.

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