Which of the Following Contracts Is Most Likely to Be

question 33

Multiple Choice

Which of the following contracts is most likely to be declared unconscionable?

• A)a consumer sales contract that charges 300 times the fair market value of the goods
• B)a consumer sales contract that limits the consumer's remedies to repair or replacement
• C)a contract between wholesaler and retailer that adds delivery charges at 15% of the costs of the goods
• D)a sales contract between wholesaler and retailer that limits remedies such as consequential damages

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividends

Earnings distributed to a company's shareholders, commonly as a profit disbursement.

Fees Earned

Income received for services provided, often used in professional and consulting business models.

Supplies

Items used in the operation of a business, often consumable, like stationery, raw materials, or maintenance supplies.