The Only Variances That Should Be Investigated Are Those for Which

question 128

True/False

The only variances that should be investigated are those for which the expected benefits of correction exceed the costs of investigating and correcting.

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Definitions:

Commercial Illegality

The state of being contrary to the laws governing commerce and business practices.

Commercial Impracticability

A doctrine in contracts law where a party may be relieved from performing under a contract, due to unforeseen and impractical hardships, not within the contemplation of the parties at the time of the contract’s formation.

Perfect Tender Rule

A principle in commercial law that requires the delivery of goods to be exactly as specified in the contract without any deviation.

Substantial Impairment

A significant reduction or weakening in strength, value, or quality of an asset or entity's ability to perform its intended function.