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ACME IncManufactures High-In-Demand Electronic Components

Question 29

Multiple Choice

ACME Inc.manufactures high-in-demand electronic components.As part of its sales contracts with customers,ACME Inc.requires that customers agree not to hold ACME Inc.liable for more than fair market value for defective components and that customers mediate any dispute they may have with ACME Inc.Is ACME Inc.'s contract unconscionable?


A) Yes,ACME Inc.'s contract is unconscionable,if it is marginally unfair to customers and against good conscience.
B) Yes,ACME Inc.'s contract is unconscionable because its terms are one-sided and grossly unfair to customers.
C) No,ACME Inc.'s contract is not unconscionable because it is transparent about the exact terms.
D) No,ACME Inc.'s contract is not unconscionable because customers still have rights under the contract.

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