Fact Pattern 12-A1 (Questions A4-A6 Apply)

question 16

Multiple Choice

Fact Pattern 12-A1 (Questions A4-A6 apply)
Jesse 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 12-A1.A court is most likely to evaluate the adequacy of consid?era?tion if

• A)a thing exchanged has no intangible value to one of the parties.
• B)something exchanged is not of direct economic or financial value.
• C)the items exchanged were of unequal value.
• D)there is a gross disparity in the value of the consideration exchanged.

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.

Understand the methodologies for analyzing the creditworthiness of potential customers.

Analyze the implications of switching from a cash sales policy to a credit policy in terms of cash flow, production, and financial management.