Fact Pattern 2-1 Bean Vendors,Inc.,and Java Bistros Corporation Dispute a Term in Their

question 18

Multiple Choice

Fact Pattern 2-1
Bean Vendors,Inc.,and Java Bistros Corporation dispute a term in their contract.
-Refer to Fact Pattern 2-1.The least expensive method of resolving the dis-pute between Bean and Java may be

• A)arbitration because the case will be heard by a mini-jury.
• B)litigation because each party will pay its own legal fees.
• C)mediation because the dispute will be resolved by a non-expert.
• D)negotiation because no third parties are needed.

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Definitions:

Labor

Refers to human effort, both physical and mental, used in the production of goods and services.

Output

Output is the quantity of goods or services produced by a company, industry, or economy within a specified period.

Average Product

The output per unit of input, calculated by dividing total output by the quantity of inputs.

Law of Diminishing Returns

An economic principle stating that as additional units of a factor of production are added to a fixed amount of another factor, the incremental increase in output will eventually decrease.