QD Representatives Met with EDS Managers

question 300

Multiple Choice

QD representatives met with EDS managers. They discussed plans for a conference room with Persian carpets, quality furniture and nice art. The parties agreed that the job would be done for $100,000, the final bill to be subject to review. QD delivered a room with ordinary carpet and furniture and posters of dogs. They sent a bill for $85,000. EDS sues QD:

• A) EDS should win based on the UCC's perfect tender rule
• B) QD should win on the basis of contract law because the UCC does not apply to real estate dealings
• C) QD should win because the terms of the contract were vague, based on oral discussions
• D) QD should win on the basis of the seller's right to cure defects
• E) none of the other choices

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Definitions:

Normal Good

A good for which demand increases as the income of individuals or the economy grows, and decreases when income falls.

Income Responsiveness

The degree to which demand for a product or service changes in response to changes in consumer income.

Income Elasticity of Demand

A metric that gauges the sensitivity of demand for a product to shifts in the income of consumers.

Weekly Income

The total amount of earnings received by an individual or entity over the span of a week.