1.Which of the following is true of the laissez-faire economic theories that wer
ID: 384852 • Letter: 1
Question
1.Which of the following is true of the laissez-faire economic theories that were prevalent in the 19th century?
A. People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts.
B. The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization
C. These theories were never considered a part of the public policy in the 19th century
D. People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required
2. Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:
A. good
B. service
C. good-faith warranty
D. mixture of goods and services
3. Which of the following is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?
A. It requires contracts for the sale of goods in excess of $300 to be in writing
B. It mainly aims to unify and codify an international law of sales
C. It focuses on which terms of the offer and acceptance are the same
D. It applies to commercial and consumer transactions
4. Which of the following is true about a contract?
A. It need not necessarily be an agreement
B. It need not necessarily be entered into by parties having capacity to contract
C. "It must be voluntarily entered into, and it is to perform a legal act."
D. It must always be supported by consideration
Explanation / Answer
1. The correct answer is “B. The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization”
As per Laissez-faire economic theories, government is resisted from intervening in the economic policies through taxes, laws, regulations, etc. Rather the economic system should be driven by the market forces. Courts unwilling to interfere with the private agreements of people that might interfere with the country’s growing industrialization also comes under the laissez faire economic theories.
2. The correct answer is A. Good.
Goods and services are treated in different ways under UCC and they receive different protections. As per the Uniform Commercial Code, goods refers to “all things which are movable at the time of identification of the sales contract”. Since, downloading software from internet resembles the same scenario, therefore it will be treated as a good.
3. The correct answer is “B. It mainly aims to unify and codify an international law of sales”.
The primary purpose of United Nations convention on contracts for the international sale of goods was to unify as well as codify the international law of sales. It was very crucial to form a fair, transparent, and uniform regime for the contracts involving international sales.
4. Correct answer is “D. It must always be supported by consideration”
Without agreement a contract cannot take place, hence option A is incorrect. The parties involved in a contract needs to have the capacity, hence, option B is incorrect. Although the act should be legal, but a contract does not required to be voluntary. Hence, option C is also incorrect. It is true that a contract must be supported by consideration. Hence, option D is true.
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