Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties
Indicate whether the statement is true or false
True
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Fletcher buys a Greesy's Burgers, Inc, franchise. Greesy's requires that its franchisees buy its products exclusively for every phase of their operations. Because Fletcher wishes to buy less expensive products, he challenges the requirement. His best argument is probably that the requirement violates? A) the implied covenant of good faith and fair dealing
B) the Federal Trade Commission's Franchise Rule. C) federal antitrust laws. D) Greesy's marketing image.
According to GASB, Enterprise funds must be used when:
A. a government has a policy to establish fees and charges to cover the cost of providing services for an activity. B. a legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. C. debt is backed solely by fees and charges. D. Any of the above apply.
____________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.
a) Conclusive b) Inconclusive c) Complete d) Definitive e) Goofy
Which of the following statements is correct?
A) Because we often need to make comparisons among firms that are in different income tax brackets, it is best to calculate the WACC on a before-tax basis. B) If a firm has been suffering accounting losses and is expected to continue suffering such losses (and we then assume that its tax rate going forward is zero), it is possible that its after-tax component cost of preferred stock as used to calculate the WACC will be less than its after-tax component cost of debt. C) Due to the way the MCC is constructed, the first break point in the MCC schedule must be associated with using up all available retained earnings and having to issue common stock. D) Normally, the cost of external equity raised by issuing new common stock is above the cost of retained earnings. Moreover, the higher the growth rate relative to the dividend yield, the more the cost of external equity will exceed the cost of retained earnings. E) None of the above is a correct statement.