A Clause in a Contract Which Provides That the Courts

question 20

Multiple Choice

A clause in a contract which provides that the courts may not be used to resolve any disputes between the parties is:

• A)void at common law.
• B)illegal at common law.
• C)referred to as a 'restraint of trade' clause.
• D)by its very nature incapable of being enforced by the courts.

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Definitions:

Goodwill

A non-physical asset that is created when one company is bought by another for an amount exceeding the fair market value of the acquired company's net identifiable assets.

Non-Controlling Interest

The portion of equity ownership in a subsidiary not attributed to the parent company, often reflected in the consolidated financial statements.

Entity Method

A consolidation approach where investments are recorded at cost without adjustment for the investee's post-acquisition activities.

Parent-Company Extension Method

A method of consolidation where the financial statements of the parent company are extended to include the financial information of its subsidiaries.