Which of the Following Is a Valid Criticism of the Use

question 28

Multiple Choice

Which of the following is a valid criticism of the use of contractual clauses to limit bailment liability?

• A) There is a social cost of courts having to inject business with ethical standards.
• B) Courts will consider the contract price relative to losses to determine enforceability.
• C) Courts apply different standards to commercial and consumer contracts.
• D) They are vulnerable to various common law challenges.

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Definitions:

Discounted Payback

The period of time required for the return on an investment to cover the cost of the investment, accounting for the time value of money.

Rate of Return

The increase or decrease in value of an investment during a specific duration, represented as a percentage of the investment's starting cost.

Cash Inflow

The total amount of money being transferred into a company, typically from operations, investments, and financing activities.

Discount Rate

Discount Rate is the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.