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 an Accredited Investor?9 Views
Finance a la Shmoop. What is an accredited investor. Well the difference
between an accredited college and an unaccredited college, can be like you
know the difference between Princeton, and the school of Feel Good Energy, that
your great Aunt Bertha, set up in her garage last year. Yeah different kind of [woman dancing in garage with disco ball]
college. Well accredited investors work on a
similar idea. A bunch of someone's have come along and agreed that accredited
investors, have a bunch of qualifications. In other words they're legit. So
accredited investors are simply investors, who qualify to do a certain
investment. Usually accredited means, that they have credit, or assets, or wampum, or
knowledge, like intellectual capital, instead of financial capital, or along with
both. Which means that they're big boys and big girls, who are able to invest a
large amount of money, in a risky venture. Officially they're investors who have an
income of at least $200,000 for the past two years, three hundred thousand for [checklist for investors on chalkboard]
joint accredited investors, like married people or partners, or have a net worth
of at least a million bucks individually, or jointly, or our executives, partners, or
directors of the entity issuing those securities. Meaning raising the dough
itself. Institutional investors, such as mutual funds, hedge funds, and pension
funds, also fit the bill. Additionally entities can be considered
accredited, but their threshold is 5 million bucks in assets. By the way if [man talking on lawn]
all the owners of an entity, like a law firm or something like that, are
accredited, well then the entity is considered accredited
as well. So yeah they're accredited investors. Not to be confused with a
credited investor, who is really excited to have a small part in a movie. [guy in movie theater]
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