Fact Pattern 19-A1 (Questions A18-A19 Apply)

question 19

Multiple Choice

Fact Pattern 19-A1 (Questions A18-A19 apply)
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments.After thirty-six months of payments,Olisa has paid more than twice the price of a similar stove.Eighteen payments remain due under the contract.
-Refer to Fact Pattern 19-A1.Olisa files a suit against Pay-to-Own,claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it.Olisa is asserting

• A)the concept of good faith.
• B)the principle of fair trade.
• C)the predominant-factor test.
• D)the doctrine of unconscionability.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product. They are an essential component of the total manufacturing cost of a product.

Variance

The difference between planned or expected performance and actual performance, often analyzed in budgeting and performance management.

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids.

Standard Costs

These are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period, based on expected material, labor, and overhead costs.