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?
A)non est factum
B)misrepresentation only
C)unconscionability only
D)both unconscionability and misrepresentation
E)undue influence only

Question

Quizplus · Accepted Answer

Both unconscionability and misrepresentation are applicable in this situation. Unconscionability refers to situations where there is a grossly unequal bargaining position resulting in overly harsh or one-sided terms in a contract. In this case, the great-grandmother was misled into signing a contract where she would be paying a significantly higher amount than what the electronic organ is worth, and the interest rate charged is also very high.

Misrepresentation refers to a false statement made by one party to another, inducing them to enter into a contract. In this case, the salesperson who visited the great-grandmother's home misled her by misrepresenting the value of the electronic organ and the interest rate being charged.

Therefore, the most likely laws to help her are both unconscionability and misrepresentation.

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