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 percent,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 place.On these facts,which of the following laws is the most likely to help her?
A) undue influence only
B) unconscionability only
C) misrepresentation only
D) non est factum
E) both unconscionability and misrepresentation

Question

Quizplus · Accepted Answer

Both unconscionability and misrepresentation laws may help her. Unconscionability refers to a situation where a contract is extremely unfair and oppressive to one party, and it is likely that a court will find that it is unconscionable to charge more than twice the market rate for an electronic organ. Misrepresentation occurs when one party makes a false statement or fails to disclose a relevant fact, and it is clear that the salesperson misled the great-grandmother by charging a higher price and interest than what is reasonable. Therefore, both of these laws may apply in this case.

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