Pan-Canada Delivery Inc Is a Common Carrier

question 59

Multiple Choice

Pan-Canada Delivery Inc is a common carrier.It accidentally damaged an expensive shipment of goods.Nevertheless, it cannot possibly be held liable if

• A)it exercised as much care as possible.
• B)the damage was caused by a rainstorm.
• C)the shipping contract contains a clause that says that "liability will not be imposed for lost goods, whether or not the loss was caused by the carrier's carelessness or fault" and no more.
• D)the goods were damaged by an inherent vice.
• E)the shipper provided consideration in exchange for Pan-Canada's services.

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Definitions:

Production Function

An equation that specifies the output that a firm can produce with varying combinations of inputs, such as labor and capital.

Supply Function

A mathematical relationship that describes the quantity of goods that producers are willing and able to sell at different prices.

Cost Function

A mathematical formula used to calculate the total cost incurred by a company to produce a given level of output.

Maximizing Profits

The process by which a company determines the price and production level that generates the most profit.