Maddie cannot read. She signs a cell phone agreement without being able to read the document. This is an example of
A) Unequal bargaining power
B) Unjust enrichment
C) Substantive defect
D) Information asymmetry

Question

Quizplus · Accepted Answer

Information asymmetry occurs when one party in a transaction has more or superior information compared to another. In this case, Maddie's inability to read the document she is signing puts her at a significant disadvantage compared to the party presenting the agreement, as she cannot understand the terms to which she is agreeing.

Maddie Cannot Read