Refer to the Scenario Below to Answer the Questions That

question 125

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
New Ideas (Scenario)
Though New Ideas Inc.has been in business for 30 years,the company and its employees have seemingly been in a constant state of change.Paul Gill has been president of New Ideas for the last 15 years.During this time,he has had to change the strategic focus of the company three times.The employees have become vocal recently about the decrease in their bonus cheques and are demanding increased profits.It seems as though his competition is always introducing new products into the market,and the niches Gill thought New Ideas held leadership in are continuously changing.Recently the government has passed new legislation to increase the control of the product packaging and product contents.The technology used to manufacture the products is constantly improving to make the process more efficient.
-The technology change in the manufacturing process to make it more efficient is the result of a competitor lowering its price.Therefore,it is a(n) ________ force for change.

• A)external
• B)internal
• C)regulatory
• D)economic
• E)technological

Recognize the implications of misrepresentation of solvency by the buyer and its impact on the seller's rights.

Comprehend the enforceability of liquidated damages and the alternatives for an injured party when such clauses are unenforceable.

Identify the limitations on remedy provisions under the UCC, especially regarding consumer goods and personal injury.

Analyze the application of common law concepts like rescission within the context of UCC remedies.

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Definitions:

Secured Perfected Creditor

Refers to a creditor who has taken the necessary legal steps to secure a right in the borrower’s collateral, ensuring priority over claims made by other creditors.

After-Acquired Property

Property acquired by a debtor after an agreement or court order, which may become subject to claim by creditors.

UCC

The Uniform Commercial Code governs commercial transactions in a way that facilitates the easy flow of commerce through consistent legal rules.

Movable Collateral

Assets that can be relocated and are used as security for a loan without transferring ownership to the lender.