C. Unconscionability & Illegality Flashcards
What is required for unconscionability?*
Contract must have been made BOTH;
1) Procedurally
- Evidence of contract formation process
- Size + Commercial setting of contract
- ‘Lack of meaningful choice’ by alleging party
- Experience + Education of alleging party
- Disparity in bargaining power
2) Substantively
- So unreasonably favorable terms towards alleging party
- NOT just unequal bargaining power
When may contracts NOT be enforced on public policy grounds?*
Deceptive acts in business
1) D engaged in consumer-oriented conduct
2) Materially deceptive/misleading (towards reasonable consumer acting reasonably under the circumstances)
3) P suffered injury
Contractors’ negligence towards use of residential/commercial premises
Usury contracts
- Loan at unreasonably high annual interest (+16%)
Businesses’ negligence towards garages/parking lots/vehicles
Owners/operators’ negligence towards pools/gyms/amusement places
