Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 11

Flora Hall went to Rent-A-Center in Milwaukee and signed an agreement to make monthly payments of $77.96 for 19 months in exchange for Rent-A-Center's allowing her to have a Rent- A-Center washer and dryer in her home. In addition, the agreement required Hall to pay tax and a liability waiver fee on the washer and dryer. The total amount she would pay under the agreement was $1,643.15. The agreement provided that Hall would return the washer and dryer at the end of the 19 months, or she could, at that time, pay $161.91 and own the washer and dryer as her own. Is this a sales contract? Is this a consumer lease? At the time Hall leased her washer and dryer, she could have purchased a set for about $600. What do you think about the cost of her agreement with Rent-A-Center? Is it unconscionable? Refer to Chapter 33, and determine whether any other consumer laws apply. Must this contract be in writing? [Rent-A-Center, Inc. v Hall, 510 NW2d 789 (Wis)]