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:

Cost of Goods Sold

The direct financial outlays for producing the products a company sells, incorporating both labor and material costs.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead costs.

Finished Goods Inventory

Inventory of finished goods awaiting sale but not yet purchased by consumers.

Raw Materials Inventory

The total cost of all parts and materials kept in stock by a company to be used in production.