Fact Pattern 8-2 Brad Defends Against a Breach-Of-Contract Suit by College Credit Corporation

question 42

Multiple Choice

Fact Pattern 8-2
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the considera?tion for their contract was inadequate.
-Refer to Fact Pattern 8-2."Adequacy" of consideration refers to

• A)"how much" consideration is given.
• B)legally sufficient value in the eyes of the law.
• C)the intangible value to a contracting party of a thing exchanged.
• D)the substantiality of the consideration exchanged.

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Definitions:

Indirect Costs

Expenses not directly traceable to a specific cost object, such as a product or project, including utilities, rent, and managerial salaries.

Product Costs

Costs that are directly incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are a major component of its cost.

Direct Labor

Wages paid to workers directly involved in the production of goods or services, as opposed to administrative or managerial staff.