Which of the Following Is TRUE

question 15

Multiple Choice

Which of the following is TRUE?

• A)A transaction can be unconscionable only if there is an inequality of bargaining power between the parties and that inequality results in an improvident bargain for the weaker party.
• B)A transaction can be unconscionable only if the bargain is not improvident.
• C)A transaction can be unconscionable only if the presumption of unconscionability is rebutted.
• D)A transaction can be unconscionable only if the contract is enforceable.
• E)A transaction is always unconscionable when a big company makes a deal with a consumer that is more to the benefit of the big company.

---

Definitions:

Principal-Agent Problem

An economic conflict where an individual (the agent) has the responsibility to act for the benefit of another party (the principal), but might fail to do so because of differing interests.

Representative Democracy

A form of government where citizens elect officials to represent their interests and make decisions on their behalf in the legislative process.

Private Business

A business entity owned and operated by private individuals, not controlled by the government, and aimed at earning profit.

Public Agencies

Government departments or organizations that operate within the public sector, providing services to the nation or a community.