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.

Answer:

No,the contract cannot be considered unconscionable because it is Amy’s mistake of signing a contract with High Note before analysing the price at other electronic stores.Amy should have analysed and compared the price at various electronic stores and then should have come to a conclusion on buying at which electronic store.But she didnot compare the prices before signing the contract.She has signed the contract with High note only consciously knowing about the price of home theatre setup.The contract is a valid one and if she cancels the contract then she has breached the contract and have to pay some amount for breaching the contract but the other party should accept it.

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