Andrew's Restaurant Was Experiencing Financial Problems

question 57

Multiple Choice

Andrew's restaurant was experiencing financial problems. His sales were down and he needed help. Andrew requires $20,000 to cover outstanding accounts within three days or face closing the restaurant. His bank refused to increase his line of credit so Andrew went to his accountant for suggestions. The accountant told him he could lend Andrew $20,000 but only if Andrew signed over a 50% interest in the business. In desperation, Andrew agreed. If Andrew wants to have the agreement set aside, which of the following would he rely on?

• A)Duress.
• B)Mistake
• C)Misrepresentation
• D)Non est factum
• E)Restitution

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Definitions:

Efficient Solution

An outcome in which resources are allocated in the most effective manner, maximizing utility or benefit without waste.

Demand Curves

Graphical representations that show the relationship between the price of a good and the quantity demanded by consumers at those prices.

Quantity

The amount or number of units of a product or service.

Collude

The act of cooperating or working together secretly, especially in order to cheat or deceive others.