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Black_prince [1.1K]
3 years ago
6

Lexi buys a food processor and uses it without any problems. She loans the processor to Jill, and Jill is injured when a part fl

ies off the machine. If the former rule of privity of contract were in place, which of the following would be true?
Business
1 answer:
Damm [24]3 years ago
7 0

Answer:

Jill cannot hold the manufacturer responsible for her injury.

Explanation:

The above question is incomplete as there are several answer options which are listed below;

• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got

• Jill can hold the manufacturer liable for her injury

• Jill cannot hold the manufacturer responsible for her injury

• Lexi can hold the manufacturer liable for Jill's injury.

The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.

With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.

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Answer:

Explanation:

Let us follow this accordingly

a. We have that ;

Z is given as = (X-mean)/standard deviation

where X = 10, mean = 6.9 and standard deviation is 8.1 ------- for A

inputting values we have;

Z = (10-6.9)/8.1 = 0.3827

Using the NORMDIST function in excel, [NORMDIST(0.3827)] = 0.649. This is the probability of earning less than 10%.

Hence the probability of earning more than 10% = 1-0.649 = 0.351 or 35.1%

b. At less than 0%;

X = 0,  mean = 6.9 and standard deviation is 8.1

Thus Z = (0-6.9)/8.1 = - 0.8519. Using the NORMDIST function in excel, [NORMDIST(-0.8519)] = 0.1971 or 19.71%.

From this, the probability of earning less than 0% = 19.71%

c. Also For B;

X = 10%, mean = 4% and standard deviation = 3.5%

inputting values gives us ;

Z = (10-4)/3.5 = 1.7143.

Using the NORMDIST function in excel, [NORMDIST(1.7143)] = 0.9568. This is the probability of earning less than 10%.

Which makes the probability of earning more than 10% = 1-0.9568 = 0.0432 i.e 4.32%

d. Als, X = 0.

Giving us;

Z = (0-4)/3.5 = -1.1429.  

Using the NORMDIST function in excel, [NORMDIST(-1.1429)] = 0.1265 or 12.65%

Thus the probability of earning less than 0% = 12.65%

e. Return on A = -4.36%

Thus z = (-4.36 - 6.9)/8.1 = -1.39. NORMDIST of -1.39 = 0.0822 or 8.22%

f. Return of B = 10.7%

Thus z = (10.7% - 4)/3.5 = 1.9143.

Its NORMDIST = 0.9722

This makes the probability of earning less than 10.7%.

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3 0
4 years ago
For financial managers to be socially responsible, it is necessary that they:
Arte-miy333 [17]
The correct answer that would best complete the given statement above is: MAKE A LONG TERM COMMITMENT TO THE NEEDS OF STAKEHOLDERS. For <span>financial managers to be socially responsible, it is necessary that they make a long term commitment to the needs of stakeholders. Hope this answer helps. </span>
7 0
3 years ago
How are you involved in the game of economics?
Karolina [17]

Answer:

We are involved in the game of economics when we spend or receive money..

Explanation:

The economy is determined by the movement of money by individuals, groups or corporations.

4 0
3 years ago
If you were willing to pay $3.05 for a gallon of milk purchased at the grocery store but bought the milk for only $2.05, you hav
svlad2 [7]

Answer:

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4 0
2 years ago
16) (2 marks)
musickatia [10]

Answer:

171 units

Explanation:

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fixed costs = £12,000

Contribution margin per unit = selling price - variable cost per unit

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contribution margin per unit

=  £88 -  £18

=£70

Break-even point = £12,000/£70

=171.42

=171 units

3 0
3 years ago
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