John Operates a Small Repair Business and Is in Desperate

question 20

Multiple Choice

John operates a small repair business and is in desperate need of a certain type of building material. He obtains the material from a large corporation, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of:

• A) in pari delicto .
• B) partial illegality.
• C) substantive unconscionability.
• D) procedural unconscionability.

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Definitions:

Purchase Offer

An offer made by a potential buyer detailing the price and terms under which they would buy a property or item.

Compounded Quarterly

A method of calculating interest where the interest amount is added to the principal every three months, increasing the amount on which subsequent interest is calculated.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Scheduled Debt

A fixed plan for the repayment of borrowed money, including principal and interest, over a specified period.