Jones v. Star Credit

• Mr. Jones & his wife were welfare recipients in the 1960s in the state of New York
• "Jones" = plaintiff
• 1 day, a salesman stopped by the Jones home to sell them a freezer for $900. However, with
  • time credit charges,
  • credit life insurance,
  • credit propety insurance, &
  • sales tax, the pruchase price jumped up to $1,235.
• Star Credit Corporation = "Star" = defendant = creditor for the fridge

Jones sued Star to rescind the contract.

The trial court found that the freezer had a maximum retail value of $300. It held that the contract was Unconscionable under the New York Uniform Commercial Code (UCC). Thus, Star lost.

Can an excessive sale price in a contract be unconscionable such that the court should refuse to enforce it?

Yes. An excessive price can render a sale contract unconscionable as a matter of law.

Affirmed.

Judge Wachtler: The doctrine of caveat emptor allows exploitative practices, some of which shock the conscience.