Which of the Following Statements Is Correct with Respect to the Legality

question 133

Multiple Choice

Which of the following statements is correct with respect to the legality of contracts?

• A) A judge can refuse to enforce a contract that involves conduct that is not prohibited by law but which court precedent considers morally unacceptable.
• B) When two merchants agree not to sell a certain product below an agreed price and the product is not readily available from others sources, this is legally permissible as long as they intend their promises to be legally binding.
• C) Insurance taken out on property you don't own is valid as long as the insurance company has been informed that you have no interest in the property.
• D) An agreement that one merchant won't open up a business in competition with another is enforceable as long as there is consideration on both sides.
• E) An agreement where one party agrees to pay another to sue a third for tort is legally enforceable.

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Definitions:

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.