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?

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