Fact Pattern 13-1 Data Storage Inc

question 70

Multiple Choice

Fact Pattern 13-1 Data Storage Inc. offers to provide cloud-computing services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer.
Refer to Fact Pattern 13-1. Enterprise's best argument in favor of enforcement of the contract is that

• A) a bilateral mistake does not afford relief from a contract.
• B) a mistake of value does not afford relief from a contract.
• C) a unilateral mistake does not afford relief from a contract.
• D) the price was below the prices of comparable services.

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Definitions:

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, with goods and services produced at their highest-valued uses.

Purely Competitive

A market format where numerous small companies offer an identical product with no barriers to entering or leaving the market, resulting in firms accepting the market price as given.

Marginal Benefit

The further utility or pleasure gained from consuming one additional unit of a good or service.

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, describing the process by which old industries or technologies are destroyed and replaced by new ones.