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Finance & Accounting
Pages 5 (1255 words)
CHAPTER 11 CASE 7 If we were to speak in terms of reasonability and good sense, I would say that the default clause is definitely unconscionable and it should not be enforced against Williams. In this case, I believe that the doctrine of unconscionability must be applied by the court.
In this specific case, stating that if Williams ever missed a payment, the store could repossess all the items that Williams had ever bought from Walker, regardless of how long ago they were purchased is a strong example of unconscionable clause. If the clause referred only to that one purchase to which the missed payment referred, it would not be considered unreasonable and unfair. I believe that in this case, the bargaining power of the parties was definitely unequal, placing the consumer in a disadvantaged position. Therefore, Williams should ask the Court not to enforce this specific clause, based on its unconscionability and unfairness. Moreover, in multiple previous cases, it was held that a court can refuse to enforce a clause, if it considers it unconscionable. For example, a leading case in this is Scott v. ...
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