Aranda Claims That Rita's Telephone Call with Aranda Is an Admission

question 5

Multiple Choice

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an exception to the statute of frauds under the UCC. Is Aranda correct?

• A) Yes, an admission is an exception to the statute of frauds under the UCC and Rita admitted the existence of the contract over the telephone.
• B) Yes, an admission is an exception to the statute of frauds under the UCC but only when it is expressly worded as an admission to the other party.
• C) No, even though an admission is an exception to the statute of frauds under the UCC, Rita never admitted the existence of a contract.
• D) No, even though an admission is an exception to the statute of frauds under the UCC, the admission was not made in pleadings, testimony, or court.
• E) No, an admission is not an exception to the statute of frauds.

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Definitions:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Short Run

A period in economic theory during which some factors of production are fixed, and only some variables, typically labor or raw materials, can be adjusted.

Average Total Cost

The total cost divided by the number of units produced, representing the cost per unit of output.

Fixed Costs

Costs that remain constant regardless of the level of production or business activity.