Read the following passage carefully.
In the late nineteenth century, American jurisprudence was dominated by Legal Formalism, a paradigm that treated the law as a self-contained, geometrically complete system. Formalists argued that judges could deduce the correct outcome of any legal dispute by applying established axioms to the facts at hand, strictly avoiding considerations of social policy or economic power. Within the realm of contract law, this approach reached its zenith in the "will theory," which posited that a contractual obligation was entirely the product of the parties' mutual agreement. Under strict Formalist interpretation, courts were bound to enforce the explicit terms of an agreement, regardless of how oppressive the results might be to the weaker party, on the premise that both parties inherently possessed equal bargaining power in a free market.
However, the emergence of Legal Realism in the 1920s mounted a sustained attack on this paradigm. Realists contended that the Formalist insistence on objective deduction masked the subjective policy choices judges were inevitably making. Specifically addressing contract law, Realist scholars argued that the assumption of equal bargaining power was an empirical fiction in modern industrial society. When analyzing standard form contracts—agreements drafted by large corporations and presented to consumers on a rigid, "take-it-or-leave-it" basis—the Realists observed that true "mutual will" was entirely absent. To mitigate the harshness of strict enforcement, Realist thinkers championed the expansion of the doctrine of unconscionability, which allowed courts to selectively invalidate contract terms that were egregiously unfair. While Formalists decried this judicial intervention as an arbitrary disruption of commercial certainty, Realists maintained that it merely brought legal doctrines into alignment with the economic realities of asymmetrical power dynamics.
The passage provides the most support for which one of the following inferences regarding standard form contracts?
- They lack a fundamental characteristic that Legal Formalists used to justify the exceptionless enforcement of contractual agreements.Answer
- BThey constitute an empirical fiction that Legal Realists sought to eliminate from modern industrial society.
- CThey inevitably produce egregiously unfair results that courts are legally obligated to invalidate.
- DThey were condemned by Legal Formalists for causing an arbitrary disruption of commercial certainty.
- EThey were widely boycotted by consumers who recognized the asymmetrical power dynamics inherent in their creation.