An Unconscionable Transaction

question 3

Multiple Choice

An unconscionable transaction

• A)is a contract that was created when at least one party was unconscious or otherwise lacked capacity.
• B)always requires proof that one party violated a statute.
• C)will exist if either the bargain was improvident or the parties did not have equal bargaining power.
• D)requires proof of either an improper threat or excessive coercion.
• E)is a doctrine that was developed in equity rather than law.

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Definitions:

Consumer's Income

The total amount of income a consumer has available to spend on goods and services.

Utility

The satisfaction or benefit derived from consuming goods or services.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Capital

Economic resources used in the production of goods and services, such as machinery, buildings, or tools.