Consider the Following Two Statements with Respects to Economic Duress

question 5

Multiple Choice

Consider the following two statements with respects to economic duress.
I.A contract cannot be set aside for duress if the threatening party acted in good faith or if the resulting renegotiation is fair or beneficial to the victim.
II.A contract can be set aside for duress, although the threatening party was merely correcting an unfair contract.
Which of the following statements is true?

• A) Both I and II.
• B) Only I.
• C) Only II.
• D) Neither I nor II.

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Definitions:

Ordering Costs

Expenses related to the procurement process, including costs associated with placing orders, processing payments, and receiving goods.

Inventory-Related Cost

Expenses associated with ordering, storing, handling, and managing inventory, including costs related to warehousing, spoilage, and obsolescence.

Fixed-Quantity System

An ordering system with the same order amount each time.

Fixed-Period System

A system in which inventory orders are made at regular time intervals.