A Contract Most Likely Will Be Declared Unconscionable If

question 12

Multiple Choice

A contract most likely will be declared unconscionable if

• A)it allows for an extremely high rate of interest to be charged.
• B)it contains a cancellation clause.
• C)it is oppressive and one-sided.
• D)it is signed by a minor for an item of luxury.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Finished Goods Inventory

Inventory that includes items that have been manufactured and are ready for sale but have not yet been sold.

Unadjusted Cost of Goods Sold

The initial calculation of all costs directly associated with the production of goods sold by a company, not including any adjustments for inventory methods or valuation changes.

Operations

The day-to-day activities involved in running a business that are necessary for producing goods and services and generating revenue.