Which of the Following Would Be the Best Example of Regulatory

question 20

Multiple Choice

Which of the following would be the best example of regulatory capture?

• A)Starbucks buys up all the available supplies of coffee beans.
• B)Nike executives influence the rules for track and field events.
• C)Federal law makers write and pass legislation that protects domestic companies from foreign competition.
• D)Executives from the Ford, General Motors, and Chrysler companies write the rules regulating automobile safety and fuel requirements.

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Definitions:

Reliance Damages

Compensation awarded for losses suffered as a result of relying on a promise or contract that was not fulfilled.

Liquidated Damages

Pre-agreed upon sums specified in a contract, payable as compensation for breach or failure to meet specific terms.

Acknowledged Damages

Damages that have been recognized and confirmed by the parties involved in a dispute or by a legal authority.

Consideration

A fundamental requirement for the formation of a legally binding contract, involving an exchange of something of value between the parties.