In Considering Whether a Contract Is Unfair Under S 24(2)

question 16

Multiple Choice

In considering whether a contract is unfair under s 24(2) of the ACL, the Court will consider the extent to which the term is:

• A)Transparent.
• B)Latent.
• C)Unconscionable.
• D)Misleading or deceptive.

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Definitions:

Direct Labor Cost

The total cost of all the labor work directly involved in the production of goods or the delivery of services.

Manufacturing Overhead-Applied

The allocation of manufacturing overhead costs to specific products or job orders based on a predetermined overhead rate.

Annual Overhead

The total expenses incurred by a business to operate over the course of a year, excluding direct labor and materials costs.

Direct Labor Hours

Direct labor hours are the total hours worked by employees directly involved in the production of goods or services.