Morton Reeves,a Building Subcontractor,submitted a Bid for Construction of a Portion

question 19

Multiple Choice

Morton Reeves,a building subcontractor,submitted a bid for construction of a portion of a high-rise office building.The bid contained material errors in computation.Lago Corp. ,the general contractor,accepted the bid with the knowledge of Reeves' errors.Reeves:

• A)must perform the contract unless he can show that Lago acted fraudulently.
• B)must perform the contract according to the stated terms since his errors were unilateral.
• C)can avoid liability on the contract only if his errors were not due to his negligence.
• D)can avoid liability on the contract since Lago knew of his errors.

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Definitions:

Production Possibilities Frontier

A graph illustrating the maximum possible output combinations for two products that a country can produce given its technological capabilities and quantity of inputs.

Unemployment

The situation when individuals who are capable of working and are actively seeking employment are unable to find a job.

Production Possibilities Curve

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.

Unemployment Rate

The fraction of the labor market actively in pursuit of work but is currently jobless.