Unconscionable and Unenforceable After a period of time, Walker has fallen behind on payments and is now in collections, her granddaughter has composed a letter in Walker’s behalf, stating that the entire deal is unconscionable and therefore unenforceable. In contract law an unconscionable contract is one that is unjust or extremely one-sided in favor of the person who has the superior bargaining power. Courts find that unconscionable contracts usually result from the exploitation of consumers who are often poorly educated, impoverished, and unable to find the best price available in the competitive marketplace.” (Legal dictionary, para. 2). In Walker’s situation, she would have a chance in court to prove that Takem’s business has displayed
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(§ 8.2A-108. Unconscionability, Code of Virginia)
With the situation having several different possible outcomes from the court, it cannot be determined which course of action the court will adopt. The court may rule that Walker is responsible for any part of the contract that is not unconscionable, making her threat that the entire deal is unconscionable and unenforceable untrue. Therefore, depending on the balance left and the court’s decision, Walker might still owe a portion of money from the …show more content…
First, I believe even though Takem’s business is considered small, he still has a social responsibility to those around him. “Research indicates that the social performance of big and small businesses alike is dependent upon the values and disposition of the top decision made (p. 129). By raising the prices to a total of about 65% he is focusing on the wrong goals for his business. If Takem feels the need to increase his prices that much then he needs to develop a better cost strategy for the future, for example, “the primary purpose of cost classification and cost analysis is to identify the categories of costs which have the most impact on profitability and require managerial action. (p. 32). This can free up resources and time, allowing Takem the ability to retrain his sales force on the laws and ethics of contracts, and engaging clients with a lower pressure sales techniques. For example, the UCC 8.2-719 recognizes the right of parties to contract freely but protects against egregious clauses where one party is in an unequal bargaining
(§ 8.2A-108. Unconscionability, Code of Virginia)
With the situation having several different possible outcomes from the court, it cannot be determined which course of action the court will adopt. The court may rule that Walker is responsible for any part of the contract that is not unconscionable, making her threat that the entire deal is unconscionable and unenforceable untrue. Therefore, depending on the balance left and the court’s decision, Walker might still owe a portion of money from the …show more content…
First, I believe even though Takem’s business is considered small, he still has a social responsibility to those around him. “Research indicates that the social performance of big and small businesses alike is dependent upon the values and disposition of the top decision made (p. 129). By raising the prices to a total of about 65% he is focusing on the wrong goals for his business. If Takem feels the need to increase his prices that much then he needs to develop a better cost strategy for the future, for example, “the primary purpose of cost classification and cost analysis is to identify the categories of costs which have the most impact on profitability and require managerial action. (p. 32). This can free up resources and time, allowing Takem the ability to retrain his sales force on the laws and ethics of contracts, and engaging clients with a lower pressure sales techniques. For example, the UCC 8.2-719 recognizes the right of parties to contract freely but protects against egregious clauses where one party is in an unequal bargaining