Fact Pattern 10-2 (Questions 10-12 Apply)

question 39

Multiple Choice

Fact Pattern 10-2 (Questions 10-12 apply)
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 10-2."Adequacy" of consideration refers to

• A)"how much" consideration is given.
• B)legally sufficient value in the eyes of the law.
• C)the intangible value to a contracting party of a thing exchanged.
• D)the substantiality of the consideration exchanged.

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Definitions:

Cross Elasticity

A metric showing how demand for a particular good is affected by changes in the pricing of another good.

DVD Players

Electronic devices designed to play discs in the DVD format, capable of producing both sound and video from digital optical disc storage.

Income Elasticity

A measure of how much the demand for a product or service changes relative to a change in consumers' income levels.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.