Courtney,who Does Not Keep Up with the Price of Current

question 9

Multiple Choice

Courtney,who does not keep up with the price of current technology,agrees to buy a used computer from Jake for $2,500.Later,Courtney's friend Brice tells Courtney that she made a terrible deal and that she could get a better,new computer for no more than $1,000.Courtney tells Jake that she is not giving him any money because he has not been fair to her in terms of the computer price.Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?

• A)Jake will win,but only if he can establish that the $2,500 price was actually reasonable.
• B)Jake will win because the court will not weigh whether a good bargain was made.
• C)Courtney will win if she can establish that she paid at least 75% more than the computer was actually worth.
• D)Courtney will win if she can establish that she paid at least 50% more than the computer was actually worth.
• E)Courtney will win if she can establish that she made a bad deal and that she was not actually aware of the current prices of both new and old computers.

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Definitions:

Flexible Budgeting

A financial planning tool that adjusts budgets based on changes in actual activity levels, allowing for variable cost adjustment.

Operating Data

Information collected on the performance and efficiency of day-to-day operations within a company.

Budgeted Volume

The amount of production or sales a company plans to achieve within a certain period as part of its budgeting process.

Production

The process of creating, manufacturing, or enhancing the value of goods and services.