Which of the Following Statements Is TRUE

question 10

Multiple Choice

Which of the following statements is TRUE?

• A) If a residential tenant commits a breach of contract, the landlord is not expected to mitigate its losses.
• B) The covenant for quiet possession may apply even if both parties are deaf.
• C) The right of distress is used more often for residential leases than for commercial leases.
• D) A commercial lease is always granted to a corporation and a residential lease is always granted to an individual.
• E) If the duration of a lease is three years or less, the parties must set a specific rent at the outset, and that amount cannot be altered during the term of the lease.

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Definitions:

Anchoring Bias

A cognitive bias where an individual depends too heavily on an initial piece of information (the "anchor") when making decisions.

Escalating Commitment

A behavioral pattern where an individual or organization continues to follow a failing course of action due to emotional attachment or the desire to justify prior investments.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making by reducing complex problem-solving to simpler judgment processes.

Cost-benefit Impact

An assessment that compares the costs involved in an action to the benefits derived from it, used to determine its overall value and feasibility.