It came to your attention that your great-grandmother had signed a contract pursuant to which she would be paying $5000 for an electronic organ that retails in reputable stores for $3000.Furthermore, the interest being charged is 18%, even though today's rate fell to a 20-year low.This debt is totally out of line with her pension income.It is apparent that she was misled by the door-to-door salesperson who came to her home.On these facts, which of the following laws is the most likely to help her?

Question

Quizplus · Accepted Answer

Both unconscionability and misrepresentation would be the most likely laws to help the great-grandmother. Unconscionability occurs when a contract is grossly unfair or one-sided, and in this case, the great-grandmother is being charged an interest rate that is not in line with today's rate and the debt is out of line with her pension income. Misrepresentation occurs when there is a false statement of fact made to induce someone into entering into a contract, and in this case, it is apparent that the great-grandmother was misled by the door-to-door salesperson who came to her home. Therefore, both of these laws would be applicable in this situation.

It Came to Your Attention That Your Great-Grandmother Had Signed