A and B Enter into a Contract on January 1

question 56

Multiple Choice

A and B enter into a contract on January 1 of this year. A 's friend C tells A , "The law generally restricts the time within which an action can be brought by either party to a contract." C 's statement is:

• A) false.
• B) true because of statutes of limitations.
• C) true because of the law of repudiation.
• D) true because of covenants not to sue.

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Definitions:

Consolidated Omnibus Budget Reconciliation Act

A federal law that provides for the continuation of group health insurance coverage for individuals and their families after a job loss or other qualifying event.

Health Coverage

Insurance that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for family and medical reasons.

Foreseeable

Able to be anticipated or predicted based on current knowledge or understanding.