In Deciding Whether or Not to Add or Delete a Product

question 118

Multiple Choice

In deciding whether or not to add or delete a product or service, common costs are probably _____.

• A)avoidable and relevant
• B)unavoidable and irrelevant
• C)irrelevant and avoidable
• D)relevant and unavoidable

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Definitions:

Adequacy of Consideration

A legal principle assessing whether what is exchanged in a contract (goods, services, or money) is fair and of sufficient value.

Mistake as to Existence

A legal misunderstanding or error regarding the actual existence of a subject matter or condition of a contract.

Fraudulent Misrepresentation

A false statement made knowingly without belief in its truth or recklessly and without concern for its truth, which induces another party to enter into a contract.

Rescission

The act of cancelling a contract and returning all parties involved to their positions prior to the agreement, effectively nullifying the contract's obligations.