Which of the following statements regarding the use of retention is (are) true?
I. Retention is best used for loss exposures that have a low frequency and a high severity.
II. A financially strong firm can have a higher retention level than a firm whose financial position is weak.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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Ricky signs a two-year contract to play basketball for the Jolters for $100,000 per game. Right
before a big game, Ricky goes to the owner and says that he will not play unless the owner pays him an additional $5,000 per game. The owner, being desperate, agrees. Now the season is over, Ricky demands his additional compensation, but the owner refuses to pay. Ricky sues. Most likely: A) Owner wins; Ricky was under a prior duty to play basketball, so Ricky's new promise is not supported by consideration. B) Ricky wins; this is a valid modification of an earlier contract. C) Ricky wins; this is a case of a modification due to unforeseen circumstances, and the modification is enforceable. D) Owner wins; contracts can never be modified. E) Ricky wins; this is a modification under the U.C.C. that needs no new consideration to be enforceable.
The judicial branch has the power to hold actions of the other branches of government unconstitutional.?
Indicate whether the statement is true or false
A trucking company that has a toll free number to call if the driver of the truck does not follow the rules of the road is using a service recovery tool.
Answer the following statement true (T) or false (F)
________ are commonly issued in the reorganization of a failed or failing firm.
A) Floating rate bonds B) Income bonds C) Mortgage bonds D) Equipment trust certificates