Asked by Ishara Ranathunga on May 25, 2024

verifed

Verified

Which of the following is true regarding unconscionability under the Code?

A) It is defined in Article 2 as "extortionately harsh, showing no regard for conscience."
B) The Code denies or limits enforcement of an unconscionable contract for the sale of goods.
C) Unconscionability may be substantive, but it cannot be procedural.
D) Unconscionability of a contract for the sale of goods makes the contract void.

Unconscionability

A legal doctrine that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are contrary to good conscience.

Contract

A legally binding agreement between two or more parties, outlining obligations and rights concerning products, services, or other matters.

  • Grasp the concept of unconscionability under the UCC, including its types and effects on contracts.
verifed

Verified Answer

AC
Allana CummingsMay 29, 2024
Final Answer :
B
Explanation :
The Uniform Commercial Code (UCC), specifically in Article 2, which deals with the sale of goods, allows courts to deny or limit the enforcement of contracts or clauses that are found to be unconscionable. This provision is a safeguard against unfair contracts, but it does not define unconscionability explicitly nor does it automatically render a contract void; instead, it gives courts the discretion to refuse to enforce unconscionable terms.