At Glamour Mattress Store,Robbie Signs a Contract to Buy a Suite

question 52

Multiple Choice

At Glamour Mattress Store,Robbie signs a contract to buy a suite of bedroom furniture. The contract sets a schedule of $500 monthly payments,subject to a late fee of 150 percent. Glamour's salesperson hurries Robbie through the deal,giving her no opportunity to read the contract. This is most likely

• A)an adhesion contract.
• B)procedural unconscionability.
• C)substantive unconscionability.
• D)an enforceable contract.

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Definitions:

Sales Increase

A rise in the amount of goods or services sold, often measured as a percentage increase over a previous period.

Contribution Format

A method of income statement presentation that stresses the contribution margin, which is sales revenue minus variable costs.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in net profit or loss.

Net Operating Income

The total profit a company makes from its operations, excluding taxes and interest.