A Contract Containing an Adjustment Provision Which Allows the Supplier

question 56

Multiple Choice

A contract containing an adjustment provision which allows the supplier to recover a fraction of his additional costs when input prices cross a certain level, is considered efficient because:

• A)it reallocates the supplier's risk while checking his activities.
• B)it reallocates risks completely to the buyers.
• C)it allows the supplier to take up risks.
• D)it allows the buyers to partially reallocate their risks.

---

Definitions:

Letter Of Recommendation

A document written to endorse an individual's skills, character, and achievements, typically for employment or academic purposes.

Meaningful

Something that has a significant, important, or worthwhile purpose or value.

Effective

Producing the intended or desired result.

Routine Message

A standard or frequently used communication that conveys regular information or procedures.