Asked by Taylor Fujimoto on May 13, 2024
Verified
Elise speaks very little English. Herman comes to her house to sell her life insurance. Herman persuades Elise to sign a contract for Elise to buy life insurance that she does not need for a price of $300 a month even though she only brings home $750 a month from her job. Under the contract, if she does not pay the $300 a month, Elise owes Herman $100. A court would find the terms of this contract ________.
A) unconscionable
B) unneeded
C) unrealistic
D) valid
E) unreliable
Unconscionable
Describes terms or agreements that are so unfair to one party that no reasonable or informed person would agree to them.
Life Insurance
A contract between an insurer and a policyholder that pays a designated beneficiary a sum of money upon the death of the insured person.
- Elucidate the notion of substantive and procedural unconscionability, and its significance in the context of contractual fairness.
Verified Answer
HL
Heather LynchMay 15, 2024
Final Answer :
A
Explanation :
The contract is likely to be found unconscionable because it is excessively unfair to Elise. She was persuaded to buy something she doesn't need for a high price relative to her income, with additional penalties for non-payment.
Learning Objectives
- Elucidate the notion of substantive and procedural unconscionability, and its significance in the context of contractual fairness.