1. In the new product development process the need to “weed out” potential failures as quickly as possible is due to the fact that:

a) management will pressure marketers to succeed quickly.        

b) production managers are not eager to expand output until the design is proven.        

c) costs increase at each step of new-product development.        

d) technology is continually changing.        

e) none of the above explain the need

2. Bob's Store orders 100 widgets at a price of $125 per widget from Widgets, Inc. Bob's Store later wants to cancel its order, but Widgets, Inc. refuses to agree to the cancellation. In an effort to keep its good customer happy, Widgets offers to reduce the price per widget to $75. Bob's Store agrees to that. Select the best answer from the following:

A. This contract falls outside the statute of frauds and no evidence of a writing is required.

B. This contract falls within the statute of frauds and must be evidenced by a writing.

C. Bob pays $100 per widget because he gave no new consideration for the reduction in price from $100 to $75 per widget.

D. Bob pays $75 per widget because an agreement for the sale of goods needs no consideration to be binding.

E. Both B & D are correct.

3. Paul used the Bikes-R-Us website to purchase a racing bike. He selected the model he wanted and provided Bike-R-Us with the necessary information to place the $2000 purchase price and the $75 shipping costs on his Visa card. The sales contract required Bikes-R-Us to ship the bike by carrier but did not require the bike's delivery to a specific destination. The bicycle was damaged during shipment when the UPS truck got into a traffic accident enroute to Paul's house.  Select the best answer from the following:

A. Paul bears the risk of loss because risk passed to him when Bikes-R-Us delivered the bike to the carrier.

B. Bikes-R-Us bears the risk of loss because this is a destination contract.

C. Paul has to pay the contract price even though the bike arrived damaged.

D. Paul does not have to pay the contract price because the bike arrived damaged.

E. Both A & C are correct.