John Enters into a Contract to Paint Chad's House

question 14

Multiple Choice

John enters into a contract to paint Chad's house.When Chad decides on a color,John will buy the paint and paint the house for the price of $2,500.This contract is governed by:

• A) the common law of contracts governs because this is a mixed contract (one for services and goods).
• B) the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods.
• C) the Uniform Commercial Code governs because a sale of goods is involved.
• D) both the common law and the Uniform Commercial Code will govern this contract.

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Definitions:

Double or Nothing

A gamble or risk in which a person has the chance to either double their money or lose it all.

Coin Flip

A simple randomness procedure involving flipping a coin to decide between two outcomes based on heads or tails.

Expected Value

The weighted average of all possible outcomes of a random variable, considering the probabilities of each outcome.

Stock Market

A public market for buying, selling, and trading stocks, which represent ownership shares in companies.