Which of the Following Is True Regarding Unconscionability Under the Code

question 54

Multiple Choice

Which of the following is true regarding unconscionability under the Code?

• A) It is defined in Article 2 as "monstrously extortionately harsh,showing no regard for conscience."
• B) The Code denies or limits enforcement of an unconscionable contract for the sale of goods.
• C) Unconscionability may be substantive,but it cannot be procedural.
• D) The Code allows for the cancellation of an unconscionable contracts,but not for payment of attorney's fees.

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Definitions:

Leverage Operations

Financial strategies involving the use of borrowed money to increase the potential return of an investment.

Outstanding Stock

Refers to the total shares of a company that are currently owned by investors, including those held by institutional investors and company officials.

Earnings Per Share

The profit of a company divided by its total number of common stock shares outstanding, showing how profitable the company is.