A Contract Provision Requiring That Suit Be Brought Within One

question 23

True/False

A contract provision requiring that suit be brought within one (1)year does not violate public policy,although the statute of limitations would allow two (2)years in the absence of such a contract limitation.

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Definitions:

Consumer Surplus

The misalignment between the price consumers are willing to allocate for a good or service and the price they actually allocate.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive, representing the profit producers make.

Tax

A compulsory charge by the government on individuals or entities' income, property, or goods, used to fund public services and government obligations.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency when the equilibrium outcome is not achievable or is not achieved in the market.