Whenever the Benefits of Group Effort Fall on Every Member

question 26

Multiple Choice

Whenever the benefits of group effort fall on every member of a large dispersed group, regardless of individual contributions, there can be a:

• A)sudden-damage effect.
• B)spillover effect
• C)free-rider problem.
• D)negative externality.

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Definitions:

Reliance Interest

Refers to the compensation aimed at putting a party in the position they would have been in had a contractual promise not been made.

Concurrent Condition

A situation in contract law where the obligations of parties are to be performed at the same time; the performance of one party is conditioned upon the performance by the other.

Constructive Condition

A condition inferred by law from the conduct of parties or the circumstances, rather than explicitly stated in a contract.

Materiality

A principle in accounting and law that concerns the significance of an event, fact, or item in the context of decision-making or reporting.