Fact Pattern 12-A2

question 84

Multiple Choice

Fact Pattern 12-A2
Brad 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-A2. If, as Brad claims, the consideration in this problem is inadequate, it may indicate a lack of

• A) accord in Brad's satisfaction with the value of the deal.
• B) bargained-for exchange or mutual assent.
• C) flexibility on the part of College Credit to accommodate Brad's needs.
• D) "heft," "substance," or "weight" in the terms of the contract.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, valued at the standard cost.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks against actual production costs.

Gallons

A unit of volume measurement used primarily in the United States, equivalent to 3.785 liters.