Cal Contracts to Sell 1,000 Logs to Doris at a Price

question 11

Multiple Choice

Cal contracts to sell 1,000 logs to Doris at a price of $250 per log. Cal believes that the logs are worth only $150 per log. When Doris finds out the true value of the logs, she refuses to buy them. Cal's contract with Doris is:

• A) unenforceable
• B) enforceable
• C) voidable
• D) void
• E) illegal

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Definitions:

Target Return-on-investment Pricing

A pricing strategy aiming to set prices based on the expected return on investment (ROI) that is targeted by the company.

Annual Target ROI

The specific return on investment a company aims to achieve within one fiscal year.

Target Return-on-investment Pricing

A pricing method aimed at achieving a specific return on investment by setting prices based on the required rate of return.

Automobile Manufacturer

A company engaged in the design, production, marketing, and selling of motor vehicles.