If a Law Is Passed After the Parties Enter into a Contract

question 38

Multiple Choice

If a law is passed after the parties enter into a contract that makes performance illegal,the contract is:

• A) terminated by operation of law.
• B) void from the beginning.
• C) terminated by alteration.
• D) unenforceable.

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Definitions:

Production Constraint

Any factor that limits the output of a production process, such as limited raw materials, machine capacity, or labor.

Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Constrained Resource

A limiting factor that restricts a company's ability to produce or perform at its maximum capability.

Split-off Point

The split-off point in production is the stage at which multiple products are derived from a common process and can be identified or measured separately.