Under the UCC, If a Court Discovers That a Contract

question 25

Multiple Choice

Under the UCC, if a court discovers that a contract or lease provision or the contract or lease as a whole is unconscionable, the court can ________.

• A) void the contract completely
• B) refuse to enforce the contract or lease in total
• C) only refuse to enforce the parts of the contract or lease that are unfair
• D) either refuse to enforce the contract or lease or can enforce the parts of the contract or lease that are deemed to be fair
• E) award the innocent party punitive damages due to the court's lack of ability to enforce an unconscionable contract

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Definitions:

Business Entity Assumption

A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business.

Economic Transactions

Acts of buying, selling, or trading goods, services, or financial assets in the economy.

Cost Principle

An accounting principle that states all goods and services purchased by a business must be recorded at their historical cost, not their current value.

Monetary Unit

A standard unit of value in which economic transactions are recorded and the primary currency used within an economy.