Discrimination Is an Example of a Rationing Mechanism That May

question 5

True/False

Discrimination is an example of a rationing mechanism that may naturally develop in response to a binding price floor.

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Definitions:

Basis-of-the-Bargain Requirement

A legal principle emphasizing that a statement must have been a part of the reason a party was induced into a contract for it to be considered as warrantable.

Catalog

A systematic list of items, which may include books, products, or collections, usually with descriptive details.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk about the quality of the goods being purchased.

Implied Warranty of Fitness

A legal doctrine that suggests that when a seller knows the specific purpose for which an item is purchased, the item is guaranteed to be fit for that particular purpose.