Whichof the following is false with respect to our court system?

a. There is no monetary limitation on the B.C. Supreme Court; i.e., thecase may

involve any amount of money.

b. A negligence action, where the extent of damage is $1500, would most likely

begin in the B.C. Provincial Court, small claims division.

c. The lawyer arguing before theB.C. Supreme Court could cite a British case,

but the judge is not bound to follow it.

d. A judge on the B.C. Court of Appeal is bound to follow the decision of a judge

on the B.C. Supreme Court on an identical case.

e. The consequence of the merger of the common law courts with the courts of

equity is that the courts now apply both the legal and equitable principles and

remedies.

If the Rhine Company ignores the possibility that other firms may enter its

market, it should set a price of $10,000 for its product, which is a power tool.

But if it does so, other firms will begin to enter the market. During the next

two years it will earn $4 million per year, but in the following two years it will

earn $1 million per year. On the other hand, if it sets a price of $7,000, it

will earn $2.5 million in each of the next four years because no entrants will

appear. a. If the interest rate is 10%, should the Rhine Company set a price of

$7,000 or $10,000? Why? (Consider only the next four years.)

b. If the interest rate is 8%, should the Rhine Company set a price of $7,000

or $10,000? Why? (Consider only the next four years.)

c. The results in parts (a) and (b) pertain to only the next four years. How

can the firm’s managers extend the planning horizon?