The Nature of Contracts Changed in the 19th Century Through

question 48

Multiple Choice

The nature of contracts changed in the 19th century through judicial instrumentalism and had what effect?

• A) Facilitating free-market determinations of wages and prices.
• B) Allowing factory owners to contract with masses of employees for wages, hours and working conditions if the terms were made known and the laborers agreed to them.
• C) Advancing the rule of caveat emptor in markets because if a seller unknowingly sold defective goods, the buyer's opportunity to inspect the goods before purchase would ensure the seller's innocence of overt deception.
• D) All of the above were effects of the changes to the nature of contracts.

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Definitions:

Positively Correlated

A relationship between two variables where they move in the same direction, meaning that as one variable increases, the other variable also increases, and vice versa.

Complete Information

A scenario in which all parties have access to all relevant information related to a transaction or decision.

Real Rate of Return

The real rate of return is the annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.

Nominal Return

The return on an investment without adjusting for inflation, representing the raw earnings or loss.