Which of the Following Statements Is True Regarding Duress

question 11

Multiple Choice

Which of the following statements is true regarding duress?

• A) Threats of blackmail or extortion constitute duress.
• B) The threatened party must prove that she had no reasonable alternative but to enter into the contract.
• C) A threat to not drop a frivolous civil lawsuit constitutes duress.
• D) A and B only are true.
• E) A,B,and C are all true.

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Definitions:

Economic Profit

The difference between a firm’s total revenues and its total costs, including both explicit and implicit costs, reflecting the true profitability of the firm.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenue.

Perfect Information

A market condition where all participants have access to complete and accurate information concerning all aspects of the market and relevant transactions.

Create Wealth

Involves generating significant assets or resources through various means such as investment, entrepreneurship, or economic activities.