Quinton is in desperate need for a new refrigerator but does not have good credit. Hulio indicates that he will sell Quinton a refrigerator, but Quinton will have to make weekly payments at 18% interest and, if he misses one payment, Hulio has the right to repossess the refrigerator. Hulio tells Quinton that those are the final terms and Quinton has 10 minutes to decide whether he wants to take the contract terms or find someone else to contract with. This is an example of a[n] ________.
A) procedurally unconscionable contract
B) expressly oppressive contract
C) outrageously invalid contract
D) adhesion contract
E) enforceable agreement

Question

Quizplus · Accepted Answer

An adhesion contract is a contract in which one party has all the bargaining power and the other party has no choice but to accept the terms. In this case, Hulio has all the bargaining power because Quinton is in desperate need of a refrigerator and does not have good credit. Hulio is able to dictate the terms of the contract, including the high interest rate and the right to repossess the refrigerator if Quinton misses one payment. Quinton has no choice but to accept these terms if he wants to get a refrigerator.

Quinton Is in Desperate Need for a New Refrigerator but Does