Practice Quiz

CLEP Business Law

Category - Contracts

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What is the difference between substantive unconscionability and procedural unconscionability?
  1. Procedural unconscionability occurs when the contract terms are excessively oppressive, while substantive unconscionability occurs when there were inequities during contract formation.
  2. Substantive unconscionability occurs when the contract terms are excessively oppressive, while procedural unconscionability occurs when there were inequities during contract formation.
  3. Substantive unconscionability occurs when the contract terms are harsh for both parties, while procedural unconscionability occurs when the contract terms are harsh for just one party.
  4. Substantive unconscionability occurs when critical terms are left out of the contract, while procedural unconscionability occurs when the written contract deviates significantly from the orally negotiated terms.
  5. Substantive unconscionability occurs when the contract terms favor one party, while procedural unconscionability occurs when there were inequities during contract formation.
Explanation
Answer: B. Substantive unconscionability occurs when the contract terms are excessively oppressive, while procedural unconscionability occurs when there were inequities during contract formation. If a court finds that a contract is substantively or procedurally unconscionable, it may refuse to enforce it or refuse to enforce the unconscionable terms. Section 2-302 of the UCC contains provisions on unconscionability with respect to contracts that are subject to the UCC.
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