Fact Pattern 10-4 (Questions 29-30 Apply)

question 40

Multiple Choice

Fact Pattern 10-4 (Questions 29-30 apply)
Dex and Carmen are in an auto accident.Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex.Carmen agrees.Later,Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 10-4.The agreement between Dex and Carmen is

• A)a covenant not to sue.
• B)an accord and satisfaction.
• C)a release.
• D)promissory estoppel.

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Definitions:

Raw Materials

Fundamental materials that are used in the production process to create goods and products.

Prices of Raw Materials

The cost of basic materials used in the manufacture of products, which can affect production costs and pricing strategies.

Fiscal Policy

Government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth.

Increased Taxes

A financial situation where a government raises the rates of taxes, affecting individuals or businesses.