Which feature is typically associated with terms considered unfair in consumer contracts?

Terms that benefit the business at the consumer's expense are typically associated with unfair terms in consumer contracts. New Zealand's Consumer Guarantees Act and the Fair Trading Act aim to protect consumers from unfair practices and ensure a level playing field in contractual agreements.

Unfair terms often disproportionately favor the business, putting the consumer at a disadvantage. For instance, clauses that allow businesses to change the price or terms unilaterally or limit a consumer's ability to seek remedies in the event of a dispute are indicative of such unfairness. The central idea is that these terms undermine the fairness of the contractual relationship, leading to situations where the consumer bears a heavier burden than the business, which is contrary to the principles of fairness and transparency that the legislation intends to promote.

In contrast, terms that are well-defined and transparent foster clarity and understanding, while those that create equality in parties' rights contribute to a balanced and fair contractual landscape. Adjustable terms based on buyer preferences typically indicate flexibility rather than unfairness, as long as they don't disproportionately favor one party. Thus, the key characteristic of unfair terms is their tendency to exploit the imbalance in power dynamics between consumers and businesses.