Your dog Rover is setting up a partnership with Godzilla. Given their massively different statures in power, adhesion contract rules will likely apply.
That is, as a rule of law, Rover will be protected from Godzilla using his full heft, and that fire-breathing thingy, to bring leverage against Rover in signing this partnership contract, which details the lemonade stand they wish to open together.
In more practical application, insurance companies with massive power over individuals fall under this rubric. It exists via an early 20th century set of laws, which viewed large corporations as unwieldy beasts that had to be controlled, such that they played by basic rules that put the small actor on equal footing with the big. Were these rules not in place, nearly infinite leverage could have been applied by corporate America, virtually stifling the rights of the little guy.
Related or Semi-related Video
Finance: What is non-voting stock?4 Views
finance a la shmoop- what is non-voting stock? hmm well it's stock that doesn't
vote. bet you're shocked to hear that. most people need a PhD in finance to [stock wears an "I didn't vote" sticker.
understand that notion. but really that's it in most cases common stock carries
with it the right to vote. and in fact it's the common shareholders who elect
the board of directors. but every now and then a potentially hostile investor
comes along and buys or wants to buy a big chunk of stock in a company. well the
amount might be a block large enough to elect that potentially hostile investor
slate or the group of people that investor wants to place on the board to
represent her evil intentions .when that happens companies will often create a
class of common stock similar in every way to its normal common only with its [stock checklist of privileges listed]
voting rights stripped away .that way the investor can own an economic interest in
the company but not monkey with the board.
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