Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 2E
To determine
To Explain: The change in behavior when contract promises are not excused due to the acts of war for clearing and settlement clients of Bank of New York and the reliance behaviors that would be considered as efficient and excessive.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Ready Foods contracts to buy two hundred carloads of frozen pizzas from Speedy Distributors. Before Ready or Speedy starts performing, can the parties call off the deal? What if Speedy has already shipped the pizzas? Explain your answers.
Should a party who enters into a contract by mistake be released from their contractual obligations? If yes, should all mistakes be grounds for release, or just certain types of mistakes?
Under U.S. law, in international contracts, the parties can agree on how and where their disputes will be resolved and which law will apply, as long as the place and the law selected bear some relationship to the nature of the contract and its place of performance. True or False?
Chapter 15 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Knowledge Booster
Similar questions
- Juan Valdez, a coffee farmer in Colombia, sells his coffee to Cafe Emporium, a U.S. firm which specializes in gourmet coffee blends. a. What must be true of this arrangement? Which sentence is true? Juan believes he is better off with this contract, but in reality, the wealthy American buyer is taking advantage of Juan's naiveté. When Juan and other farmers in Colombia sell their coffee beans to foreigners, their nation as a whole gains in the long run, as countries gain from trade. While this arrangement is good for Juan, he would be better off if the government had negotiated the contract for him because the government could have gotten a better price. Juan and other farmers in Colombia who make such transactions are made better off as a result. b. What can be inferred from the fact that Juan has voluntarily entered into a contract with Cafe Emporium? Which sentence is true? Juan is earning zero economic profit selling coffee. Juan has…arrow_forwardDescribe the four fundamental principles of integrative negotiation.arrow_forwardAmerican Airlines and British Airways are proposing to merge. If British pilots and American pilots are represented by different unions, how would this merger affect airline costs? Please, explain.arrow_forward
- Why does Manuel Velasquez think that multinational corporations are in a situation akin to a prisoner’s dilemma?arrow_forwardSuppose that the marginal benefit of writing a contract is $125 and the marginal cost of that contract is $100. Based on this information, the optimal contract length should a. be decreased by half. b. be increased. c. be held constant at the contract length where MB = 125 and MC = 100. d. be decreased by two-thirds.arrow_forwardIf you received a price increase request from a strategic supplier of goods, for which there is competition, and the request was for an increase of 4.5 percent due to 'abnormal trading conditions, raw material increases, energy prices and overheads', what would be your next actions?arrow_forward
- Why do issues of bounded rationality and opportunism increase the costs of using contracts in market-based interaction?arrow_forwardWhen exactly does the Uniform Commercial Code apply to contracts?arrow_forwardSuppose that Yara wants to purchase a boat from Rana. Yara is willing to pay up to $18,000, while Rana is not willing to accept any offer below $15,000. Assume that there are a finite number of negotiating rounds. If the discount factors for Rana and Yara are discount factor for Rana= 0.05 and discount factor for Yara= 0.05, respectively, how much should Yara offer for the boat? Suppose that Rana's discount factor is discount factor for Rana = 0.20, and Yara’s discount factor =0.15. How much should Yara offer for the boat? How does this offer differ from your r to part a, and why?arrow_forward
- QUESTION:- Which of the following best describes duress? a. Illegitimate pressure exerted by one person on another person to coerce them to contract on particular terms b. Strong commercial pressure exerted by one person on another person to coerce them to contract on particular terms c. Actual injury by one person or actual damage by one person to the goods belonging to another person to coerce them to contract on particular terms d. None of the other answers is correctarrow_forwardDemand and supply are both specified as functions of price, ruling out other extraneous influences like obligation and government commands. How does this joint dependency enhance market efficiency, compared with relying on direct binary negotiation?arrow_forwardBargaining power may exist for a seller if they have another buyer to whom they can sell the product.True or False?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning