A Company Specializing in Foreign Language Lessons Sells One Set

question 120

Multiple Choice

A company specializing in foreign language lessons sells one set of lessons for $199, but all five sets of lessons purchased upfront sell for $499, a discount of nearly 50%. The company is offering this large discount in hopes that its consumers experience

• A) a sense of altruism.
• B) a sunk cost fallacy.
• C) a framing bias.
• D) overconfidence.

Comprehend the various bargaining issues, including compensation, personnel policies, and bargaining structures.

Recognize the difference between multilateral and institutional bargaining and their respective contexts.

Distinguish between the types of bargaining structures and the strategic preferences of employers and unions.

Understand the concept of attitudinal structuring and its importance in labor-management relationships.

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Definitions:

Verbal Agreement

An agreement made through spoken words between parties that can be legally binding, but is harder to prove than a written contract.

Enforceable

Capable of being imposed or carried out by legal process or authority.

Single Promise

A commitment or agreement involving one clear and unambiguous obligation or stipulation.

Promissory Estoppel

Promissory Estoppel is a legal principle that prevents a person from going back on a promise, even if it wasn't formally made as a contract, provided others have relied on the promise to their detriment.