Airlines That Restrict the Use of Frequent Flyer Miles During

question 9

Multiple Choice

Airlines that restrict the use of frequent flyer miles during the holiday season likely do so because:

• A)the opportunity cost to the airlines of filling seats with frequent flyers is lower at these times.
• B)the opportunity cost to the airlines of filling seats with frequent flyers is higher at these times.
• C)passengers have more transportation alternatives available to them at these times.
• D)the airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.
• E)the opportunity cost to the airlines of filling seats with frequent flyers is zero.

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Definitions:

Consideration Requirement

The legal principle that a contract must involve a bargain or exchange of value between the parties to be enforceable.

Existing Contract

A legal agreement that is currently in place and governs a relationship between parties at the present time.

Past Consideration

Something of value that has been given or promised in the past and cannot serve as consideration for a current contract due to its occurrence before the contract was made.

Present Promise

A vow or commitment to take action or uphold terms at the current time.