The Employment Exception to the Privity Doctrine

question 12

Multiple Choice

The employment exception to the privity doctrine

• A) is a form of equitable assignment.
• B) was created by statute.
• C) allows an employer to acquire rights in a contract that was created between a customer and an employee.
• D) is usually necessary because the employer did not provide consideration to the customer.
• E) can be applied in a case the involves vicarious performance.

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Definitions:

Segregate Market

The practice of dividing or separating markets into sections or categories based on consumer demographics, behaviors, or other characteristics.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity referring to the degree of responsiveness.

Good Substitutes

Products or services that can be used in place of each other, having a high cross-elasticity of demand.

Income Elasticity Coefficient

A measure indicating how much the quantity demanded of a good responds to change in consumer income.