What type of contract is presented on a take-it-or-leave-it basis, with no negotiation of terms?

The correct response is a contract of adhesion. This type of contract is characterized by its non-negotiable terms, meaning that one party presents the agreement to the other on a 'take-it-or-leave-it' basis. The party that drafts the contract typically has more power, which creates an imbalance in bargaining power.

In a contract of adhesion, the consumer or the weaker party agrees to the terms as they are without modifications, often due to urgency, necessity, or lack of alternatives. This is common in standard forms of insurance policies, where the insurer provides a pre-drafted agreement that the insured must accept in its entirety if they want the coverage offered.

Understanding this concept is critical, particularly in the insurance industry, where consumers are frequently at a disadvantage in negotiating the terms of their contracts. The idea is that these contracts are meant for expediency and convenience for both parties, but they can sometimes lead to disputes about the fairness of the terms that were presented.