The UCC Deals with Unconscionability in a Contract by Providing

question 23

Multiple Choice

The UCC deals with unconscionability in a contract by providing that a court may

• A)refuse to enforce the contract.
• B)enforce the remainder of the contract without the unconscionable clause.
• C)limit the application of any unconscionable clause as to avoid any unconscionable result.
• D)All of these are correct.

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Definitions:

Consumer Surplus

The disparity in the consumers' desired payment amount for a good or service and the actual expense they bear.

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.

Large Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced.

ATC

Average Total Cost, which is calculated by dividing the total cost of production by the quantity of output produced.