Adhesion Contracts Are Those That Are Drafted by One Party

question 27

True/False

Adhesion contracts are those that are drafted by one party and presented to the other without a substantial opportunity for revision.

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Definitions:

Moral Hazard

A situation where a party is more likely to take risks because the negative consequences of the risk will be borne by another party.

Seat Belts

Safety devices designed to secure passengers in a vehicle against harmful movement that may result during a collision or a sudden stop.

Accidents

Accidents are unplanned events that can cause damage, injury, or loss, often stemming from unforeseen circumstances or negligence.

Adverse Selection

A situation in insurance and finance where higher-risk individuals are more likely to apply for or select a particular service, leading to potential losses for the insurer or lender.