Why Would a Businessperson Use Contractual Terms as a Planning

question 18

Multiple Choice

Why would a businessperson use contractual terms as a planning feature of the law?

• A) to limit liability and block use of the parole evidence rule
• B) to limit liability and shield against possible future events
• C) to limit liability and prevent collateral oral agreements
• D) to limit liability and buffer against certain future events

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Definitions:

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and complete information, leading to price taking behavior.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, leading to market stability.

Market Demand

The combined volume of a good or service that consumers in a marketplace are ready and capable of buying at assorted prices.

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.