unconscionability Flashcards
unconscionability
gives courts means to police those that shock the conscience
definitions
substantive unfairness mixed with an absence of bargaining ability that does not rise to the level of incapacity OR does not rise to the level of misrep, duress, or undue influence
208
if unconscionable at time contract is made court may refuse to enforce, enforce without the term, or limit application of the term
ucc2-302
matter of law at time it was made. refuse to enforce the contract, may enforce the reminder,limit application to avoid unconscionable result
relationships
consumers against merchants
franchisees against franchisors
employees against employers
procedural
agreement process, lack of menaigful choices. UCC 302 takes about an “unfair surprise”
substantive
terms of contract. UCC 302 talks about “prevention of oppression”
focus on fairness of exchange
both P and S unconschionabilty must be present
at time of contracting,
sliding scale
procedural UNC
hidden terms and confusing terms, unequal bargaining per, undermining the reason for the contract
substantive UNC
terms cannot be justified, nature of term, is there equivalency
COMMON THEME is OUTRAGEOUSNESS
unconscionability in general
absence of meaningful choice on part of one of the parties together with contract terms that unreasonably favorable to the other party