Ethel's Exercise World Plans to Order Three Weight Machines from Pete's

question 3

Multiple Choice

Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal,and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way) promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?

• A)The promise made by Ethel's Exercise World to buy the weight machines.
• B)Moneybag's promise to pay if Ethel's Exercise World doesn't.
• C)Both Moneybag's promise and Ethel's Exercise World's promise.
• D)None of the promises in this problem need to be in writing.

---

Definitions:

Big XII Championship

An annual championship game determining the conference champion of the Big XII Conference, primarily in American college football.

U.S. Treasury Bills

Short-term government securities issued by the United States Department of the Treasury with maturity periods ranging from a few days to 52 weeks.

Common Stocks

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock appreciation.

Riskless Assets

Financial instruments that are considered to have a minimal possibility of default, often yielding a guaranteed, but lower, return.