Brief Fact Summary. Plaintiffs, various welfare recipients (Plaintiffs), agreed to purchase a home freezer for $900. The Plaintiffs paid $619.88 towards the purchase. The Defendant, Star Credit Corp (Defendant), claimed that charges relating to the extension of time for payment results in a $819.81 still being due. The maximum retail value of the freezer is $300.
Synopsis of Rule of Law. Section 2-302 of the Uniform Commercial Code, (UCC) “authorizes a court to find, as a matter of law, that a contract or a clause of a contract was ‘unconscionable at the time it was made,’ and upon so finding the court may refuse to enforce the contract, excise the objectionable clause or limit the application of the clause to avoid an unconscionable result.”
Facts. Plaintiffs, who are welfare recipients, agreed to purchase a home freezer for $900. The total purchase price became $1,234.80. Thus far, the Plaintiffs have paid $619.88 towards the purchase. Defendant claims that with various charges relating to the extension of time for payment, there is a balance of $819.81 still due. The maximum retail value of the freezer is $300.
Issue. Is the transaction unconscionable pursuant to the terms of UCC Section:2-302?