Mike Owns a House in a Poor Area of a Large

question 18

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 buys and 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 did not understand what he was signing and thought it was a permission slip allowing the salesman to conduct a free water test to determine the number of 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 unenforceable because it is illusory.
• D)The contract is unenforceable because it is exculpatory.

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Definitions:

Idiosyncrasy Credits

The leeway or freedom granted to individuals to deviate from group norms because of their past contributions or performance.

Structural Innovations

Changes or advancements in organizational, societal, or technological structures aimed at improvement or solving problems.

Path-goal Theory

A leadership theory that focuses on how leaders motivate their followers to achieve goals by clarifying the path, removing obstacles, and offering rewards.

Emotional Needs

Fundamental human needs for emotional support and validation, including the need for love, acceptance, and a sense of belonging.