The Courts Have Very Broad Powers to Enforce or Not

question 14

Multiple Choice

The courts have very broad powers to enforce or not enforce certain types of contracts.Which of the following statements best describes this power?

• A) Contracts that are contrary to public policy are well defined by statutes.
• B) The determination of what is unconscionable is very well established and follows very clear standards.
• C) Exculpatory clauses and noncompete agreements sometimes violate public policy and sometimes do not.
• D) To be contrary to public policy,the contract must violate a statute.

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Definitions:

Owner's Capital

The total equity or financial contribution provided by the owner(s) of a business.

Prepaid Insurance

An asset account that represents payments made for insurance coverage before the coverage period.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure accuracy.

Accounts Receivable

Dues from clients to a corporation for goods or services already benefited from but yet to be paid for.