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- 5) Identify which of the statements below is false A □ Bundling occurs when a combination of goods or services is sold at a price that is less than it would cost to buy the same items separately B □ In limit pricing, the incumbent sets a low price to deter a potential entrant from entering the industry C □ The purpose of predatory pricing is twofold: to drive out current rivals and to make future rivals think twice about entry D □ By holding excess capacity, the incumbent can credibly threaten to increase the price if entry occurs.When Callifornia based Dalton & Dalton(D&D) was contracted by a large conglomerate in Taiwan, the president of D& D was quiet surprised. For 2 years, D&D had been looking for a oversees conglomerate that would be interested I building & selling its high-tech medical equipment under the licensingAgreement. A) The Taiwanese conglomerate has proposed to D & D that the two companies enter into a jointventure type of licensingagreement. The way in which the business deal will work if the following: The Taiwanese will setup manufacturingfacilities and create a marketing group to sale D&D high-tech medical equipment. B) D & D will train 25 manufacturing and 25 sales people from the conglomerate so that the later understands how to make and sell this equipment. This training will take place in the states. C) D&D will have the right to send people to the manufacturing facility to ensure that the equipment is built according to the specifications and will…1. The Sherman Antitrust Act prohibits price fixing. Price fixing is A. the use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is. B. the practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage. C. an agreement among competing firms to raise, lower, or maintain prices for mutual benefit. D. an attempt to establish high prices by becoming the market leader. E. the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace. 2. Travis Kellogg is a sales representative for Xerox and his territory includes St. Louis and the surrounding suburbs. One of his accounts is Cintas, which offers a wide range of products to businesses. Travis was working with the Cintas division manager, Kiera Valentine, to gain her approval to purchase a networked printer and copier for the local office.…
- State whether the following agreements or contracts are void, voidable valid, and provide a reason for your answer. Q.2.4 Amy, who is 17, has inherited an apartment in Cape Town from her deceased father. The apartment is valued at R2 million. With her mother’s assistance, Amy enters into an agreement to sell the apartment to her aunt. Q.2.5 Justin, who is mentally ill, concludes a contract for the sale of his laptop without his curator knowing.2) A fiduciary relationship is one based on trust and explicit or implicit contract that creates economic incentives for the different parties. Select an alternative True FalseBenigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?
- 1. What are the requirements for an offer? 2. How is an offer terminated? Describe the circumstances in which a counteroffer results.Give five (5) examples of instruments which may be reformed. (b) In the above examples, who are the parties who can bring the action for reformation of the instrument?Consider the following contractual relation between B and S. B's value of the widget, denoted by v, is uncertain at the time of contracting. Assume that v will be either $90 or $150 or $170 with an equal probability. S's cost to produce the widget is $100 (c = $100). S's reliance expenditure is $10 (e = $10). Contract says that S is to deliver a widget to B at p = $130. Assume that B promises to pay S the contract price $130 (not paid in advance). Assume that if the contract is not completed, reliance expenditure has no value. Note: I will clarify the timing of the model again. Initially, B and S sign the contract. S chooses reliance e. Then, B observes the actual value of v, and decides whether to breach or not. If B breaches the contract, S does not incur the production cost $100 at all. The presumption is that for S, there are two types of costs, (1) the cost he incurs before B's breach decision that is captured in e, and (2) the extra cost he should incur to complete the…
- Q.3.1 Differentiate between an external and a domesticated company. Q.3.2 Discuss the concept of “piercing the corporate veil”. In your answer makereference to relevant case law and sections of the Companies Act.By takeover constraint, we mean constraints placed by the firm on raiders who want to takeover the firm.legal constraints that limit the ability of the raiders to acquire a firm.provisions in the charter of a company that prevents it from attempting a takeover of other companies.the risk of being acquired by a hostile raider.q) Explain, with reasons, whether or not the increase in thebad debt provision increases audit risk and describeappropriate tests you would carry out on the provision.