To access this feature, please Log In or Register for your Casebriefs Account.

Add to Library




A Contract of Adhesion

1979) a claim of unconscionability in an equipment lease by reason of the disclaimer by a lessor of all warranty obligations was rejected in view of the preservation of the lessee’s rights against the seller of the equipment. The facts in Funding Systems differ somewhat from the facts in the instant case in that Funding Systems involved a three party transaction with a direct sale from a vendor to a purchaser-lessor with financing advanced by a lessor who took title to the equipment as a security device, whereas here we have a two-party lease with no option to purchase. Nevertheless, the issue of unconscionability of the disclaimer of warranties by the lessor is identical to that issue in this case. We agree with the conclusion reached by the majority in Funding Systems: The retention of full warranty rights against the seller prevents the disclaimer of warranty obligations by the financing lessor from being unconscionable.

Much as we may wish to sympathize with the unrepresented respondents, we cannot escape the fact that it was the equipment, not the terms of the contract, which failed to live up to respondents’ expectations. They possessed the right to seek full and complete relief under the express and implied warranties made by the vendor. The fact is they sought relief from the wrong party.
The trial court did not address the issue of appellant’s damages and the record regarding this issue is both confusing and incomplete. In the petition appellant alleged respondents were entitled to an offset in the sum $ 1,820, the net proceeds of a private sale of the equipment. At trial Mr. Hogan testified that he had been unsuccessful in attempting to sell the equipment. Mr.

Create New Group

Casebriefs is concerned with your security, please complete the following