Fact Pattern 14-A2 (Questions A5-A6 Apply)

question 11

Multiple Choice

Fact Pattern 14-A2 (Questions A5-A6 apply)
Moore Properties,Inc.,offers in writing to sell to New Development Corporation (NDC) a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it,Moore discovers that the price should have been stated as "$121,000."
-Refer to Fact Pattern 14-A2.Moore's misstatement of the price is

• A)a bilateral mistake.
• B)a fraudulent misrepresentation.
• C)a unilateral mistake.
• D)unconscionable.

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Definitions:

Natural Monopoly

A market situation where a single firm can supply the entire market more efficiently than multiple firms due to high fixed or start-up costs.

Producing Electricity

The process of generating electric power from sources of primary energy such as coal, natural gas, nuclear, solar, or wind energy.

Economic Inefficiency

A situation where resources are not utilized in the most productive way, leading to lost potential output or welfare.

Profit-Maximizing Price

The price at which a company can make the most profit, considering the balance between price and quantity sold.