CARFAX Is a Company That Compiles and Sells Histories of Used

question 230

Multiple Choice

CARFAX is a company that compiles and sells histories of used cars. CARFAX reduces the

• A) number of cars exchanged in the used car market.
• B) information asymmetry in the used car market.
• C) number of used cars offered for sale in the market.
• D) cost of used cars in the market.

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Definitions:

Bound By Contracts

A phrase indicating that parties are legally obligated to adhere to the terms outlined in a contract they have entered into.

Presumed

Accepted as true or valid based on the evidence until proven otherwise.

Primary Obligation

The main or fundamental duty that a party is required to perform under a contract.

Debtor

An individual or entity that owes money or other obligations to another party, known as the creditor.