Principal-interest to be paid in equal monthly installments

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A poorly educated and elderly person at home is approached by a door-to-door sales representative who convinces the person to purchase a freezer that incompletely full of meat products for $3,000 on credit, at a 100 percent interest rate, with principal and interest to be paid in equal monthly installments over three years. The freezer is worth $400, and the meat is worth $300. This is an unconscionable contract. The court can rewrite the contract to reasonable terms--such as a price of $700 at 8 percent interest rate--or completely refuse to enforce the contract at all. Discussion Questions (Ethics and Substantive Law): What does the doctrine of unconscionability provide? Does the fact that the term unconscionable is somewhat vague serve any useful purpose? Does the doctrine of unconscionability encourage ethical behavior?

Reference no: EM131177093

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Principal-interest to be paid in equal monthly installments : A poorly educated and elderly person at home is approached by a door-to-door sales representative who convinces the person to purchase a freezer that incompletely full of meat products for $3,000 on credit, at a 100 percent interest rate, with princi..

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