Firm Buys on Terms of 3/15, Net 45

question 45

Multiple Choice

firm buys on terms of 3/15, net 45.It does not take the discount, and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

• A)25.09%
• B)27.59%
• C)30.35%
• D)33.39%
• E)36.73%

Identify and evaluate different types of misrepresentations (fraudulent, innocent, and negligent) and their legal consequences.

Distinguish between duress, undue influence, unilateral, and mutual mistake and their impact on the enforceability of contracts.

Analyze the legal remedies available for breach of contract, including rescission, damages (compensatory, nominal, reliance), and specific performance.

Explain the concept of voidable contracts and the conditions under which a contract may be considered voidable.

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Definitions:

Undocumented Migrants

Individuals who enter or stay in a country without the required legal documentation or exceed their permitted stay.

Ben Bernanke

An American economist who served as the Chairman of the Federal Reserve, the central banking system of the United States, from 2006 to 2014.

Freddie Mac

A government-sponsored enterprise established to expand the secondary mortgage market by buying loans from lenders, thereby increasing the supply of money available for mortgage lending.

Fannie Mae

A government-sponsored enterprise established in 1938 to expand the secondary mortgage market by securitizing mortgages, thereby increasing the supply of money available for mortgage lending and home ownership.