Ranjit Purchased a Complex Computer System from Compu-Less

question 71

Multiple Choice

Ranjit purchased a complex computer system from Compu-Less.Although Compu-Less had specially manufactured the computer to Ranjit's personal specifications, the sale was created on the basis of a standard form agreement that the company uses when customers buy mass-produced computer units.A dispute has now arisen between Ranjit and Compu-Less.Which of the following statements is most likely to be TRUE?

• A)The strict terms of the contract will not be enforced if, before Ranjit signed the agreement, the company's sales manager said, "Don't worry about the legal mumbo-jumbo.We stand behind our products."
• B)Because of the parol evidence rule, the parties' contract will not include the warranties contained in the Sale of Goods Act unless the contract either repeats those warranties or at least refers to them.
• C)Neither party can enforce a term of the contract unless that party proves that the other party had read the term.
• D)The court may refuse to add an implied term to the contract even if that term would make the contract, in the court's opinion, fairer to Ranjit.
• E)The golden rule of contract interpretation states that an ambiguous term must be interpreted in the way that most benefits the party that drafted the contract.

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Definitions:

Break-even Point

The point at which total income matches total costs, leading to a situation where there is no gain or deficit.

Variable Cost

Costs that vary directly with the level of production or the volume of services rendered, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company generates, including expenses like lease payments, wages, and premiums.

Break-even Point

The volume of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.