The term refers to various state laws. These state laws are intended to (1) ease contractual negotiations by requiring sufficient reliable evidence to prove the existence and specific terms of a contract, (2) prevent unreliable oral evidence from interfering with a contractual relationship, and (3) prevent parties from entering into contracts with which they do not agree. These laws require that certain contracts be in writing. (Chapter 13)

Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.

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Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.