If a Customer at a Zellers Store Brings a Purchase

question 97

Multiple Choice

If a customer at a Zellers store brings a purchase to checkout,and the item is not priced,the clerk at the register can ask the customer what the price is.If the price is $25 or less,the clerk does not have to do a price check.The clerk has been given the authority to trust the customer to have quoted the correct price.Which of the following is illustrated by this sort of discretionary power?

• A) responsibility
• B) laissez-faire
• C) empowerment
• D) indoctrination

Understand the adaptability of conventional drafting practices to enhance clarity.

Understand the concept of primary and secondary liability in negotiable instruments.

Differentiate between the liabilities of makers, drawers, and indorsers in negotiable instruments.

Recognize the effects of indorsements and warranties on negotiable instruments.

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Definitions:

Interest Paid

This is the amount of money paid by a borrower to a lender in return for the use of borrowed money, usually expressed as a percentage of the principal.

Effective Rate

The actual interest rate an investor earns or pays on an investment or loan, taking into account the effect of compounding.

Nominal Rate

Nominal Rate is the interest rate before adjustments for inflation, reflecting the actual monetary cost of borrowing.

Opportunity Cost

Missing out on possible advantages from other choices when a specific choice is made.