QUESTION IMAGE
Question
which of the following contracts is most likely to be declared unconscionable?
a consumer sales contract which charges 300 times the fair market value of the goods.
a consumer sales contract which limits the consumers remedies to repair or replacement.
a contract between wholesaler and retailer which adds delivery charges at 15% of the costs of the goods.
a sales contract between wholesaler and retailer which limits remedies such as consequential damages.
Unconscionable contracts are those that are so one - sided and unfair that they "shock the conscience." A consumer sales contract charging 300 times the fair market value is extremely unfair and likely to be considered unconscionable. Limiting remedies to repair or replacement (in a consumer contract) is a common and often - allowed limitation (unless there are additional factors like the goods are not fit for any purpose). A contract between a wholesaler and retailer adding a 15% delivery charge is a normal business term. Limiting remedies like consequential damages between a wholesaler and retailer is also a common business - to - business contract term.
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A consumer sales contract which charges 300 times the fair market value of the goods.