Kevin Goes to the Store to Purchase a Fully-Automatic Washing

question 68

Multiple Choice

Kevin goes to the store to purchase a fully-automatic washing machine.He browses through several models of washing machines,but does not let the salesperson know that he wants a fully-automatic model.While signing the sales contract,he does not notice that the model he is purchasing is a semi-automatic machine.After purchase,which of the following options does Kyle have?

• A)Exchange the machine with a fully-automatic one and sue the store if its does not accept it.
• B)Demand a full cash refund from the store for fraud in concealment.
• C)Sue the store for its innocent misrepresentation.
• D)Keep the semi-automatic washing machine as he made a unilateral mistake.

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Definitions:

Productivity

Productivity is a measure of the efficiency of production, often expressed as the ratio of output to input in the production of goods and services.

Decision Tree

A graphical representation used to display decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

Expected NPV

The anticipated net present value of a project or investment, calculated using estimated inflows and outflows to assess its profitability and risk.

Cost Of Capital

The rate of return a company must offer investors to entice investment in the company, reflecting the risk of investing in the firm.