If a Court Discovers That a Contract or Lease Provision

question 61

Multiple Choice

If a court discovers that a contract or lease provision or the contract or lease as a whole is unconscionable,what actions does the UCC provide for the court to take?

• A)The court either can refuse to enforce the contract or lease or can enforce the parts of the contract or lease that are fair.
• B)The court has no power to enforce the lease and must award the innocent party punitive damages.
• C)The court can only refuse to enforce the contract or lease in total.
• D)The contract is void.
• E)The court can only refuse to enforce the parts of the contract or lease that are unfair.

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Definitions:

Preventive Maintenance

Routine maintenance and inspections of equipment and facilities to prevent unexpected breakdowns and to ensure efficient operation.

Useful Life

The estimated duration of time over which an asset is expected to be usable by an organization, influencing depreciation calculations.

Economic Value

The assessment of value that a good or service offers to an economic entity.

Operating Cost

Expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.