Which of the Following Is True Regarding Unconscionability Under the Code

question 37

Multiple Choice

Which of the following is true regarding unconscionability under the Code?

• A) It is defined in Article 2 as "extortionately harsh, showing no regard for conscience."
• B) The Code denies or limits enforcement of an unconscionable contract for the sale of goods.
• C) Unconscionability may be substantive, but it cannot be procedural.
• D) Unconscionability of a contract for the sale of goods makes the contract void.

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Definitions:

Inflation Rate

The percentage change in the price level of goods and services in an economy over a given period of time.

Prime Interest Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Equation of Exchange

An economic formula representing the relationship between the supply of money in an economy and the level of prices of goods and services, expressed as M*V = P*T.

Nominal GDP

The gross domestic product measured in current prices, without adjustment for inflation.