Charging Interest on Past Due Customer Accounts Reflects That

question 3

Multiple Choice

Charging interest on past due customer accounts reflects that:

• A)credit customers receive preferential treatment.
• B)government regulations protect customers who are late in making payments.
• C)money has a time value.
• D)credit sales cost more to manage than they are worth.

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Definitions:

Theory Of Recovery

Legal principles that provide the basis on which a plaintiff can sue and obtain damages or other remedies in court.

Establishing Duty

The process of determining whether an individual or entity has a legal obligation or responsibility in a particular situation.

MacPherson v. Buick

A landmark court case that established the principle that manufacturers owe a duty of care to not only the purchasers of their products but also to the users.

Foreseeable Plaintiff

A concept in tort law referring to an individual who could be reasonably expected to be harmed by the defendant's actions or negligence.