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:

Production Possibilities Curve

A visual diagram demonstrating the highest potential production pairings of two products or services that can be attained by an economy when every resource is used completely and effectively.

Technological Advance

The introduction or improvement of technology, leading to increased efficiency, productivity, or new capabilities within society or specific industries.

Production Possibilities Curve

The production possibilities curve illustrates the maximum possible output combinations of two goods that an economy can achieve when all resources are fully and efficiently utilized.

Output

The cumulative volume of goods or services yielded by a business, industry, or economic structure.