A Court Will Interpret a Disclaimer in a Contract Between

question 52

Multiple Choice

A court will interpret a disclaimer in a contract between a business and a consumer contra proferentem.This means:

• A)against the interests of the business seeking to rely upon it.
• B)in favour of the interests of the third party seeking to rely upon it.
• C)in a way that makes it more likely that the disclaimer will apply to the apparent breach.
• D)in a way that ensures that the business is protected in all circumstances.

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Definitions:

Total Variable Cost

The sum of all costs that vary with the level of production or sales, such as materials and direct labor.

Direct Costs

Expenses that can be directly traced to a specific cost object, such as a product, department, or project.

Incremental Manufacturing Cost

The additional cost incurred to produce one additional unit of product, including materials, labor, and overhead costs.

Production Increase

An upward adjustment or rise in the amount of goods and services produced by a company.