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1. Esther lives with a caregiver on whom she is greatly dependent and trusts. The caregiver persuades Esther to sign a contract with the caregiver that greatly favors the caregiver. If the contract is set aside, it will likely be on what grounds?
A. Mistake
B. Duress
C. Undue influence
D. Fraud
2. Jackie tells a group of friends that she plans to sell her home. Meg asks how much Jackie hopes to get for the house, and Jackie replies, "$50,000." Meg says, "I accept your offer. I'll purchase your house for $50,000." No contract exists because
A. Jackie doesn't seriously intend to enter a contract.
B. the offer isn't properly communicated.
C. the terms of the offer aren't reasonably certain.
D. Jackie's statements are merely preliminary negotiations.
What is a natural monopoly? How does a natural monopoly lead to lower costs than would exist if there were more than one firm in an industry that is a natural monopoly?
Critical Review of Research Evidence
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