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Steadigen Company sells two generators-Model A and Model B-for $454 per unit and $396 per unit,respectively.The variable cost of Model A is $408 per unit and of Model B is $314 per unit.If Steadigen Company's sales incentives reward sales of the goods with the highest contribution margin per unit,the sales force will be motivated to push sales of Model A more aggressively than Model B.
Remedy Limitation
A legal principle specifying the conditions or time frames within which a remedy, such as filing a lawsuit or making a claim, must be initiated.
Prima Facie Unconscionable
A legal term indicating that an agreement or term appears, at first sight, to be excessively unfair or unjust.
Common Law
A body of law developed through court decisions over time, as opposed to laws enacted by legislatures (statutory law).
Rescission
The act of cancelling a contract and returning all parties involved to their positions before the contract was made.
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