Mindset Industries Co Is Interested in Taking a 90% Stake

question 20

Multiple Choice

Mindset Industries Co is interested in taking a 90% stake in New Age Computers Co. The parties agree that they should wait a month before the shares are transferred to avoid a fall in value. A month later, the shares lose 30% of their value and Mindset refuses to cooperate on the transfer. In which of the following scenarios could Mindset get out of the agreement by alleging it is too uncertain to be enforced?

• A) Because of the haste with which the parties concluded the agreement, they forget to stipulate a contract price for the shares.
• B) The parties stipulated that the contract price would be determined by an arbitrator appointed by the English Institute of Arbitration. Mindset now refuses to appear before the tribunal.
• C) The parties stipulated that the price can only be determined by a chartered accountant agreed by both parties. Mindset now refuses to cooperate in agreeing an accountant.

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Definitions:

Respondent Behavior

Behavior that is elicited by a specific stimulus and is part of the classical conditioning process, such as salivating when smelling food.

Substituting Stimulus

A stimulus that is used to replace another, prompting a similar response in a conditioning experiment or situation.

Reinforcement Schedule

A plan for how and when reinforcement will be delivered in operant conditioning to encourage certain behaviors.

Response Rate

The frequency or speed of responses to a stimulus or query, often used in surveys, research, and experiments.