Which of the Following Is an Example of a Situation

question 70

Multiple Choice

Which of the following is an example of a situation where the court will consider adequacy of consideration?

• A)When someone purchases a TV for $500 and later discovers it is worth less than $100.
• B)When someone purchases a house and discovers later that property values in the neighborhood are falling.
• C)When someone purchases a car which is later subject to a manufacturer recall.
• D)The court never considers adequacy of consideration.
• E)When someone divests himself of all of his assets for a very small amount of money and then declares bankruptcy.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are significant in cost.

Specific Process

A defined sequence of activities or steps designed to achieve a particular outcome, often unique to a particular field or industry.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or providing services.