Marian Met with the Owner of a Warehouse and Contracted

question 135

Multiple Choice

Marian met with the owner of a warehouse and contracted for factory space for a two-year term.The amount to be paid ($2400 yearly) and the premises were made clear,but nothing else was discussed.The law,however,implies some terms.Which of the following is a term of the contract?

• A) The landowner has no obligation to provide vacant possession at the time the lease period is to start.
• B) The landlord need not provide quiet enjoyment of the premises.
• C) The landlord has no general obligation to deliver premises that are clean or in good repair.
• D) The premises will be reasonably fit for her purpose.
• E) The tenant is responsible for normal wear and tear.

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Definitions:

Long Run

A period sufficient for all inputs to production, including physical capital, to be adjusted.

Shut-Down

A temporary or permanent cessation of operations in a business or factory, often due to financial difficulties or external factors.

Marginal Costs

The additional cost incurred from producing one more unit of a product or service.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as rent or salaries.