Contracts Are Enforced By

question 4

Multiple Choice

Contracts are enforced by:

• A)the firms that make the contracts through buy-out clauses.
• B)law firms that specialize in contract enforcement.
• C)corporations specializing in contract writing and enforcement.
• D)government through the judicial system.
• E)both households and firms through customer relations departments.

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Definitions:

Netscape Stock

Represents the shares of Netscape Communications Corporation, a company once dominant in the web browser market before being acquired by AOL.

Futures

Agreements that enforce a commitment from the buyer to acquire, or from the seller to divest, an asset at a specific price and time decided beforehand.

Jet Fuel

A type of aviation fuel designed for use in aircraft powered by gas-turbine engines.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, typically involving derivatives contracts like futures and options.