Which of the Following Would Be the Correct Analysis of the Effect

question 33

Multiple Choice

Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class?

• A) Rick is stuck with the book because he objectively agreed to purchase it.
• B) Rick is stuck with the book because Beverly did not commit fraud.
• C) Rick is stuck with the book because Beverly subjectively thought it was the correct book, and Rick did not openly disagree before the contract was executed.
• D) Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract.
• E) Because both parties were mistaken, at Rick's option he may return the book; but only half of the purchase price would be required as a refund from Beverly because she is not guilty of fraud.

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Definitions:

Bonds

Debt securities issued by entities such as corporations or governments to raise capital, promising to pay back the principal along with interest on specified dates.

European-Style Option

A contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on the expiration date only.

Expiration Date

The date on which an option, right, or derivative instrument becomes void and the rights under it no longer apply.

Glaxo Stock

Equity shares issued by GlaxoSmithKline, a global healthcare company, representing ownership in the company.