When Parties Enters into a Contract Where a Claim Is

question 40

Multiple Choice

When parties enters into a contract where a claim is made that a bargain is unconscionable, which of the following is correct?

• A) There is an automatic presumption of undue influence due to the relationship of the parties.
• B) A close relationship between business associates prevents a finding of unconscionability.
• C) When one party lacks the intellect to enter into a contract, the contract continues to be binding on both parties.
• D) A presumption of fraud is raised when there is an inequality in the position of the parties due to the ignorance of the weaker party.
• E) Because a party to the contract is an uneducated immigrant, the contract is voidable.

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Definitions:

Responses

Reactions or answers provided following specific stimuli or situations.

Observational Learning

The process of learning behaviors by watching and imitating others, also known as modeling.

Responding

The act of reacting to a stimulus or situation, often measured in psychological experiments.

Vicarious Conditioning

Learning that occurs through observing the reactions of others to an environment or stimulus rather than through direct experience.