Contracts of Utmost Good Faith

question 63

Multiple Choice

Contracts of utmost good faith

• A)arise when one party is uniquely situated to know the material facts, as in the case of an insurance contract.
• B)are the only contracts that do not require any kind of disclosure.
• C)do not require notification of any changes to previously supplied information.
• D)have no bearing on the law of misrepresentation.
• E)allow parties to lie to each other prior to entering into a contract without any legal consequence attaching to those lies.

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Definitions:

Material Costs

The expenses incurred for the raw materials used in the manufacturing process of a product.

Production

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Profitable

An economic condition where revenue exceeds the costs and expenses incurred in producing goods or services.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.