Which of the Following Is True Regarding Unconscionability Under the Code

question 8

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 of a contract for the sale of goods makes the contract void.
• D) Unconscionability may be substantive, but it cannot be procedural.

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Definitions:

Timeliness

The aspect of delivering or completing a task within an expected or designated timeframe.

Faithful Representation

A fundamental qualitative characteristic in financial reporting, ensuring that financial statements are complete, neutral, and free from material error.

Flexibility

The ability of a company or system to adapt to changes or new requirements.

Accounting Information

Financial data and records about an organization's transactions, used for reporting, analysis, and decision-making purposes.