Kate and Ben Entered into a Contract

question 72

Multiple Choice

Kate and Ben entered into a contract.She promised to transfer 1000 shares in XYZ Corp to him; he promised to personally draft architectural plans to certain specifications for her.Kate transferred the shares to Ben as promised, but he later discovered that he simply lacked the ability to uphold his end of the bargain.Which of the following statements is TRUE?

• A)If Kate promises to give up her right to demand architectural plans from Ben in exchange for his promise to create a computer program for her, the parties can solve their problem through accord and satisfaction.
• B)Since neither party promised to pay money, the original contract is unenforceable because it is not supported by legal tender.
• C)A seal is necessary for the purposes of an accord and satisfaction.
• D)The contract would be unenforceable under the statute of limitations only if the parties had originally agreed that Ben would have more than six years to complete the architectural plans.
• E)Rescission provides the simplest way in which the parties can bring their contract to an end.

Analyze the role of technological and labor specialization in achieving economies of scale.

Understand the relationship between production volume and total production cost.

Describe strategies firms can employ to achieve economies of scale.

Evaluate the impact of market structure on economies of scale and firm efficiency.

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Definitions:

La Niña

A climate pattern characterized by cooler than average sea surface temperatures in the central and eastern tropical Pacific Ocean, influencing global weather patterns.

Moist Air

Air that contains a high level of water vapor, often leading to higher humidity levels and affecting weather patterns and human comfort.

Precipitation

Any water substance, whether solid or liquid, that comes down from the clouds and touches the Earth, encompassing rain, snow, sleet, and hail.

Greenhouse Effect

The warming of Earth's surface and lower atmosphere caused by the presence of certain gases in the air which trap energy from the sun.