Mike Owns a House in a Poor Area of a Large

question 28

Multiple Choice

Mike owns a house in a poor area of a large city.Mike is on disability and his total monthly income is $700.A sales representative visits his home,selling a water purification system.Mike signs a contract that calls for monthly payments of $500 for the next 10 years.The water system is worth no more than $1000.Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water.How would a court most likely describe this contract?

• A)The contract is fully enforceable as written.
• B)The contract is unenforceable because it is unconscionable.
• C)The contract is enforceable, but only up to the value of the water system.
• D)The contract is unenforceable because it is exculpatory.

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Definitions:

Online Dispute Resolution

The use of technology and the internet to facilitate the resolution of disputes between parties, often without requiring physical presence in a courtroom.

International Scope

Pertaining or relating to activities, considerations, or effects that cross national boundaries or encompass multiple countries.

Judicial Review

The power of courts to assess the constitutionality of legislative acts and governmental actions, and invalidate them if found unconstitutional.

Congressional Enactment

The process through which the U.S. Congress passes legislation into law.