A Consumer Conducting Business with a Bank Must Accept the Standard

question 11

Multiple Choice

A consumer conducting business with a bank must accept the standard set of terms expressed in the loan agreement,even though those terms are non-negotiable and typically favour the bank.Why would a modern-day court most likely continue to uphold these contractual "take it or leave it" arrangements?

• A) the law expects a bank to show goodwill toward its customers
• B) the agreement does not require further elaboration or clarification
• C) the law expects people to take care of themselves
• D) consumers accept the bank's unconditional offer

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Definitions:

Demand Conditions

Factors that influence the demand for goods and services in an economy, including income levels, tastes, and prices of related goods.

Monopolist

An individual or entity that has exclusive control over the production and sale of a product or service, enabling them to potentially manipulate market prices.

Normal Return

A benchmark profit level that represents sufficient compensation for an entrepreneur or business to cover the opportunity cost of capital and labor, without generating economic profit.

Economic Profit

The difference between total monetary revenue and total costs, including both explicit and implicit costs.