The Doctrine of Unconscionability Has Evolved Through Its Application by the Courts

question 24

Multiple Choice

The doctrine of unconscionability has evolved through its application by the courts to include:

• A) contract negotiating procedures.
• B) substantive contract terms.
• C) good faith.
• D) Both contract negotiating procedures  and substantive contract terms  are correct.

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Definitions:

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.

EBIT

A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed to variable costs a company has.

Variable Expenses

Costs that vary directly and proportionately with changes in production volume or business activity.