Jones v Star Credit Corp

Procedural History: Facts: Plaintiffs (welfare recipients) purchased home freezer for $900, after a salesman visited their home. Total sale equaled $1,234.80. Plaintiffs paid $619.88 towards their purchase, and defendant claims they still owe the balance. The freezer unit, at time of purchase, ran a maximum of $300 retail value. Issue: Was the contract unconscionable at the time it was made? If it is unconscionable, then under UCC 2-302, then court may refuse to enforce the contract. Unconscionable contract - grossly unfair contract, usually someone preys upon uneducated, ignorant, poor individuals & taking advantage, which constitutes fraud in that the defrauded party is a victim. Holding: Court believes the contract is unconscionable as a matter of law.

Reasoning: Knowing advantage was taken against the plaintiff. Plaintiff has limited financial resources. Meaningfulness of choice essential to the making of the contract can be negated by a gross inequality in bargaining power. Problem appears to be deficiencies in the bargaining process.