Suppose You Own a Courier Service and You Use Two

question 55

Multiple Choice

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs $30 000 to purchase,and Model B,which costs $50 000 to purchase.You have a budget of $300 000 for the purchase of new vehicles.If you were to draw a budget line to illustrate the choice between Model A and Model B vehicles,with A on the vertical axis and B on the horizontal axis,the vertical intercept and the horizontal intercept,respectively,would be

• A)10 and 10.
• B)6 and 6.
• C)0 and 10.
• D)0 and 0.
• E)10 and 6.

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Definitions:

Course of Dealing

The pattern of previous conduct between parties that establishes a common basis for understanding their future transactions and behaviors.

Course of Performance

Refers to the conduct between contracting parties that is consistently undertaken in the course of their business relationship, serving as an interpretative tool for their agreement.

Course of Dealing

The history of conduct between parties in a transaction, which can help interpret their agreement and obligations.

Perfect Tender Rule

a legal principle under the UCC that requires sellers to deliver goods that exactly meet the terms of the contract with the buyer.