The frequency of breakdown of a piece of equipment per month is shown in the table.The cost of a breakdown is $1,000 and the cost of preventive maintenance is $2,000 per month.Assume that the equipment breakdown can be avoided if preventive maintenance is performed.Should the manager use preventive maintenance,or would it be better to fix the equipment when it breaks down?
Definitions:
Common Law
A legal system based on judicial decisions and precedents rather than statutory laws, common in many English-speaking countries.
Consideration
Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.
Quantum Meruit
A legal principle meaning "as much as he has deserved," allowing a person to recover reasonable compensation for services or goods provided when no contract exists, or where a contract exists but precise amounts are not specified.
Relied Promise
This term does not correspond to standard legal or contractual terminology and may not be a real key term. NO.
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