When a Legislature Has Specifically Stated That a Particular Contract

question 75

Multiple Choice

When a legislature has specifically stated that a particular contract is void,a court need only:

• A)cancel the contract.
• B)interpret and apply the statute.
• C)decide whether the contract is against public policy.
• D)decide whether the contract is unconscionable.

---

Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, which typically includes materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Contribution Margin

The amount by which sales revenue exceeds variable costs of goods sold, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Costs

Expenses that change in proportion to the level of production or sales activity, such as raw materials and direct labor.