Matrix Corporation, a Computer Manufacturer, Agrees to Purchase from Chipmaster

question 54

Multiple Choice

Matrix Corporation, a computer manufacturer, agrees to purchase from Chipmaster, Inc. all the computer chips that Chipmaster can produce during the next 12 months, at cost plus a twelve-percent markup. Matrix later does not purchase any computer chips during the 12 months year. Can Chipmaster enforce the agreement made with it?

• A) Yes, this is an enforceable requirement contract.
• B) No, the price is not sufficiently defined.
• C) No, the agreement to purchase is illusory.
• D) Yes, this is an enforceable output contract.

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Definitions:

Standard Deviation

An index showing the degree of spread or variability among a collection of numbers.

Confidence Interval

A range of values, derived from the statistical analysis of data, that is likely to include the true population parameter with a certain level of confidence.

Sample

A subset of individuals or observations from a population used to estimate parameters or statistics of the whole population.

Mean

The average of a set of numbers, calculated by summing them up and dividing by the number of summands.