Ann Is Injured in an Accident Caused by Bob

question 18

Multiple Choice

Ann is injured in an accident caused by Bob. Bob agrees to pay Ann $2,500 if she agrees to release Bob from further liability. Ann agrees. If Ann's damages ultimately exceed $2,500, Ann can

• A) collect the balance from Bob in a breach-of-contract suit.
• B) collect the balance from Bob in a tort suit.
• C) collect the balance from Bob on the ground of unforeseen difficulties.
• D) not collect the balance from Bob.

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Definitions:

Foreign Competition

Competition that domestic companies face from companies located in other countries, influencing markets, pricing, and innovation.

Trade Restrictions

Measures such as tariffs, quotas, and embargoes that countries impose to control the amount of trade across their borders.

Import-Substitution Policy

An economic strategy aimed at reducing dependence on imported goods by promoting domestic production of similar products.

Trade Restrictions

Measures implemented by a government to control or limit the import and/or export of goods and services, often to protect domestic industries.