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:

Equivalent Unit

A concept used in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all inventory units.

Process Costing System

An accounting method used to assign costs to units of production in industries where the production process is continuous.

Ending Work In Process

The balance of unfinished goods at the end of an accounting period, which includes material, labor, and overhead costs incurred.