Which of the Following Observations Is False

question 172

Multiple Choice

Which of the following observations is false?

• A) Competition needs to be considered when adding in overhead and profit for a bid price.
• B) Some sellers fake their records to make costs seem higher than they really are.
• C) Negotiated price is a price set based on bargaining between the buyer and seller.
• D) Negotiated pricing is rare in situations where the marketing mix is adjusted for each customer.
• E) Negotiated pricing is a demand-oriented approach.

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Definitions:

Punitive Damages

Financial compensation awarded in a lawsuit that exceeds simple compensation and is intended to punish the defendant for egregious conduct.

Product Liability

The legal obligation of manufacturers and sellers to compensate for losses or injuries caused by defects or malfunctions of their products.

Implied Warranties

Legal assurances that are not explicitly stated but are assumed in transactions, such as the assumption that goods are of merchantable quality.

Reasonable Inspection

A thorough yet fair examination or check, often used in contracts or legal contexts to ensure compliance with standards.