[Jade Shoes] Coleman Owns a Sporting Goods Store and Has

question 72

Multiple Choice

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-If Coleman decides to arbitrate, which of the following would most likely be false?

• A) The dispute would be resolved quicker than litigation.
• B) Coleman would not be allowed to bring any witnesses.
• C) Coleman would spend less money on arbitration than if he engaged in litigation.
• D) Coleman's assistant, a professional athlete, could testify about the poor quality of the shoes provided by Jade.
• E) Coleman and Jade would be more likely to continue a business relationship after arbitration than if they engaged in litigation.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, and processes.

Production Possibilities Frontier

The Production Possibilities Frontier is a curve depicting all maximum output possibilities for two goods, given a set of inputs.

Bowed-shaped Curve

A graphical representation that shows a diminishing rate of return, illustrating that as more of one good is produced, greater sacrifices are made in foregone production of another good.

Economic Question

A query that seeks to understand how scarce resources are allocated, such as what to produce, how to produce it, and for whom to produce.