Business Law and Ethics
If a contract is deemed unfair or unreasonable by a court, it may not be enforced. I was astonished to read about this. The doctrine of unconscionability is used to describe this. Considering how much discretion the courts would be granted over the validity of contracts, I was intrigued by this.
If a contract is unfair or unjust, a court can refuse to enforce it under the doctrine of unconscionability, a legal tenet. Courts cannot enforce contracts if they believe them unfair or unreasonable. That means that judges have much power over what constitutes an acceptable contract.
‘Trump University Settlement,’ the title of the piece says.
Former Trump University students are suing Donald Trump over a contract issue, according to the author of this piece. It was alleged that Trump University employed unfair and deceptive marketing methods and misled prospective students about the quality of the education they would receive while at the institution; The matter was subsequently settled for $25 million by Trump.
Former Trump University students and Donald Trump were involved in a contract dispute over the level of education students would receive. That Trump University misled them about the level of education they would receive and used fraudulent marketing methods to promote the institution were claims made by the students. Ultimately, Trump paid $25 million to resolve the legal dispute.
Donald Trump and former students of Trump University are involved in a contract dispute that is the subject of this article. It was alleged that Trump University employed unfair and deceptive marketing methods and misled students about the quality of the education they would receive at the school. The matter was subsequently settled for $25 million by Trump.
It would have been better if Trump University had been more forthcoming about its education level. It is also possible that the institution may have avoided employing misleading marketing techniques.
When drafting a contract, it being up-forward and truthful is critical. Preventing disagreements in the future will assist.
Trump University might have avoided the contract issue if it had been more forthright about the quality of the education students would receive. It is also possible that the institution may have avoided employing misleading marketing techniques. Instead of a contract battle, the university might have stated the quality of instruction students should expect.
Reference
Osipian, A. L. (2020). Trump University: Crime and Settlement. In Corruption in Higher Education (pp. 88-95). Brill.https://www.nytimes.com/2018/05/02/nyregion/trump-university-settlement.html
Shireman, R. (2019). Selling the American Dream: What the Trump University scam teaches us about predatory colleges. Social Research: An International Quarterly, 85(4), 767-794.
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Question 
Before this point, we have covered how the various United States’ legal systems generally work. We will apply this foundation to the upcoming subjects through a business lens for the rest of the semester.
Business Law and Ethics
First up is contracts. For your discussion board assignment this week, please discuss something you learned in the reading or slides that surprised you or that you found particularly interesting.
Then please do some research and find an article discussing a contract dispute. Please summarize the article and, if applicable, discuss how the dispute could have been avoided through a differently worded contract based on what you learned in the reading and slides this week.
Please let me know if you have any questions.