Frank's Furniture Company promised in a written agreement to purchase as much walnut wood "as it desires" from Forestry Products, Inc If Frank's purchased walnut wood from another source and Forestry Products sued, what is the likely result?
Frank's is not obligated to purchase anything from Forest Products under this contract. Therefore, the contract is illusory and fails for lack of consideration. Forestry Products could not win a suit to enforce an agreement.
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Which of the following did NOT occur in the life insurance industry during the most recent financial crisis?
A. Low equity values reduced asset-based fees on separate account assets. B. Losses were incurred on holdings of commercial mortgage-backed securities and commercial loans. C. Asset-based fees declined on products such as variable annuities and pension fund assets that were tied to equity returns. D. Low interest rates and harsh economic conditions caused many policyholders to terminate or surrender their policies. E. Historically low interest rates caused increased demand for whole life policies.
Describe the different types of value propositions on which a company might position its products
What will be an ideal response?