Law 201 Week8 Assignment 7 – Whether Contract Is Unconscionable – Amy, a 20-year-old college student, went to High Note

Thomas Edison State College 

Amy, a 20-year-old college student, went to High Note, a large store specializing in electronics, to buy a home theater setup. The salesman told her that she could rent to own the Alpo Theater Model XL2 if she made lease payments of a mere $25 a week for 100 weeks and a final payment of $500. Without shopping at any other store, Amy signed the contract to “rent to own” the Alpo theater under the terms discussed above. The next week she was window-shopping at another electronics store and saw the same theater for $1000. She then tried to cancel her contract with High Note, but High Note refused. Amy alleges that the contract is unconscionable because it calls for a sales price several times greater than the prevailing market price of the Alpo XL2.

• Discuss whether this contract is likely to be considered unconscionable.
• Will Amy’s station as a college student impact the outcome of this case?
• What are the laws involving sales contracts and rights of the buyer?
• This case will be decided on legal grounds, but would the outcome be different if ethical considerations came into play?