Derek and Abyan Were Discussing Business Over Lunch When They

question 38

Multiple Choice

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land.Since neither of them had any paper with them,Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street,St.Joseph,Minnesota,U.S.A.for the price of $4,500 per acre.Transfer of title,payment,and possession to take place on May 1,2011." Abyan signed the napkin.On May 1,2011,Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price.If Derek sues Abyan for the price of the land,the most likely result will be

• A)Abyan will win because the writing is not sufficient under the Statute of Frauds.
• B)Derek will win because the writing is sufficient under the Statute of Frauds.
• C)Abyan will win because Derek did not sign the writing.
• D)Derek will win because the Statute of Frauds does not apply to this situation.

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Definitions:

Technological Improvements

Enhancements or advancements in technology that increase production efficiency, product quality, or introduce new goods and services.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclic unemployment.

Production Efficiency

A level of production in which the economy can no longer produce additional amounts of a good without lowering the production level of another product.

Production Inefficiency

A situation where a firm or economy is not producing at the lowest possible cost or maximally utilizing its resources, leading to waste or lost potential output.