Question

Red operates a fledgling remodeling business and is in desperate need of a certain type of drywall. He obtains the material from Megaworks, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of:

Answer 1

substantive unconscionability.

Step-by-step explanation:

This unreasonable terms of contract in the given context is a case of 'substantive unconscionability'.

It refers that the objective terms of a contract is not fair and equal. Substantive unconscionability is an outcome of a harsh and excessively oppressive contract terms.

Here in the context, Red had to made a contract with Megaworks as he was in urgent need of a material. Megaworks taking advantage of this, sold Red the material at an excessive price and also succeeded to sell Red some unwanted material.

Thus Megaworks entered into a harsh contract with Red and sold the material unfairly at a very huge price.

Hence the answer is ---

substantive unconscionability.