Which of the Following Should Be the Result in Regard

question 35

Multiple Choice

Which of the following should be the result in regard to Penny's obligation to Credit Card Company B?

• A) That the company is not bound by its promise because the debt was liquidated.
• B) That because Penny offered and the company accepted a different performance in discharge of the obligation, the company is bound.
• C) That because the car is worth only $1,000, nowhere near the amount of the debt, the company is released from its promise.
• D) That under equitable principles, upon disaffirming the agreement, Penny may keep the car, and the company must take a deduction of 50% on all amounts due.
• E) That under equitable principles, upon disaffirming the agreement, Penny must transfer the car to the company, and the company must take a deduction of 50% on all amounts due after sums received from the sale of the car are credited to Penny's account.

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Definitions:

Slow Growth

A condition signifying a minimal increase in economic output or business activity, often perceived as slower than desired or expected.

Sensitivity

The degree to which the price of a derivative, investment, or portfolio changes in response to changes in market conditions or underlying variables.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, resulting in a sudden change in its price.

Demand Shock

An unexpected event that causes a sudden increase or decrease in demand for goods or services in an economy.