Alice Makes a Material Misrepresentation of Fact to Betty, and Based

question 44

True/False

Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Alice now thinks that the contract is not fair to her. This contract is voidable at Alice's option.

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Definitions:

Theory of Consumer Behavior

An economic framework describing how individuals make decisions to allocate their resources on consumption items, based on their preferences, income, and the prices of goods and services.

Diminishing Marginal Utility

The principle that as a consumer increases consumption of a good or service, the incremental satisfaction gained from consuming each additional unit decreases.

Purchasing Decisions

Purchasing decisions involve the process by which consumers or organizations make choices about which products or services to buy, influenced by factors such as price, quality, and personal preferences.

Marginal Utility

The boost in happiness or utility a consumer gets from buying one more unit of a product or service.