South Dakota Crop Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the South Dakota Crop Insurance Exam. Study smart with flashcards and multiple choice questions; all questions feature hints and detailed explanations. Ace your exam effortlessly!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What type of contract is a contract of adhesion?

A contract that allows negotiations
A contract drafted by the company with no room for negotiation
A contract that must be signed by both parties
A contract that includes mutual obligations

The correct answer is: A contract drafted by the company with no room for negotiation

The correct answer is that a contract of adhesion is characterized as a contract drafted by one party, usually a company, with no room for negotiation by the other party. In these types of contracts, the terms are typically set by the party with greater bargaining power, and the other party is presented with a "take it or leave it" situation. This means that the individual or entity on the receiving end usually cannot alter the terms, which often leads to an imbalance in power and control within the contractual agreement. Contracts of adhesion are commonly seen in insurance policies, leases, and various types of consumer agreements, where standard terms are created to streamline the process and protect the interests of the party with more resources or influence. The defining characteristic lies in the lack of negotiation, as one party presents the contract as-is, leaving the other party to either accept the full set of terms or reject the contract altogether.