Final answer:
False. In arms-length contracts, the law does require adequacy of consideration.
Step-by-step explanation:
The statement is False. In arms-length contracts, the law does require adequacy of consideration. Adequacy of consideration refers to the idea that the value exchanged between the parties to a contract must be fair and reasonable. While the law does not dictate a specific dollar amount for consideration, it does require that consideration be something of value.
For example, if two parties enter into a contract for the sale of a car, the consideration for the buyer might be the purchase price, while the consideration for the seller might be the transfer of ownership and possession of the car.
Furthermore, the law does not enforce contracts that lack consideration. So, it is important for parties to an arms-length contract to ensure that there is adequate consideration involved.