Sonic Board Corporation Files a Suit Against Custom Fabricators Company,claiming

question 32

Multiple Choice

Sonic Board Corporation files a suit against Custom Fabricators Company,claiming that the consideration for their contract is inadequate.The court will most likely not examine the adequacy of the considera?tion if

• A)there is a large disparity in the amount of consideration exchanged.
• B)Sonic asserts that there is inadequate consideration.
• C)something of value passed between the parties.
• D)the consideration is worth less than $100.

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Definitions:

Exchange

The act of giving one thing and receiving another in return, particularly in terms of goods, services, or other valuables in a market setting.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

International Trade

The exchange of goods and services between countries, allowing nations to expand their markets and access goods that are not produced domestically.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce more of a good or service with the same amount of resources than competitors.