Which of the Following Statements Is True About Adhesion Contracts

question 45

Multiple Choice

Which of the following statements is true about adhesion contracts?

• A) They are a common type of unconscionability.
• B) They exclude any standard form contracts.
• C) They are generally unenforceable in a court of law.
• D) They provide substantial opportunity for revision for all parties involved in a contract.
• E) They are usually drafted by multiple parties in a contract.

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Definitions:

Share Certificate

A physical document certifying ownership of a particular number of shares in a company.

MBCA

Model Business Corporation Act, a template for state legislation that provides a statutory framework for the creation and operation of corporations within the United States.

Right of First Refusal

A contractual right that gives its holder the option to enter into a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Option Agreement

An agreement that gives a party the option, but not the obligation, to buy or sell an asset at a predetermined price and date.