Privity of Contract Does Not Apply to Consumer Transactions

question 18

True/False

Privity of contract does not apply to consumer transactions.

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Definitions:

Investment Centre

A segment or area of a business responsible for both its revenue and its investments.

Residual Income

The amount of income that exceeds the minimum rate of return or hurdle rate, often used in performance measurement.

Operating Assets

Assets that are used for the core operations of a business, necessary for creating goods or services to be sold.

Residual Income

Operating income that remains after deducting all required costs of capital from net operating profits, often used in performance measurement.