Which of the Following Statements Is Correct with Respect to the Legality

question 133

Multiple Choice

Which of the following statements is correct with respect to the legality of contracts?

• A) A judge can refuse to enforce a contract that involves conduct that is not prohibited by law but which court precedent considers morally unacceptable.
• B) When two merchants agree not to sell a certain product below an agreed price and the product is not readily available from others sources, this is legally permissible as long as they intend their promises to be legally binding.
• C) Insurance taken out on property you don't own is valid as long as the insurance company has been informed that you have no interest in the property.
• D) An agreement that one merchant won't open up a business in competition with another is enforceable as long as there is consideration on both sides.
• E) An agreement where one party agrees to pay another to sue a third for tort is legally enforceable.

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Definitions:

Total Costs of Ownership (TCO)

An evaluation of the total expenses associated with purchasing, operating, and maintaining a product over its entire lifecycle.

Standard Cost Models

Accounting models that use predetermined costs for calculating inventory valuations, cost of goods sold, and assessing operational efficiency.

Pretransaction Costs

Expenses incurred before the actual purchase or transaction takes place, such as research, supplier evaluation, and negotiation costs.

Value Engineering

A systematic process aimed at increasing the value of a product, project, or service by examining its functions, improving performance, and ensuring cost efficiency.