Mike owns a house in a poor area of a large city.Mike is on disability and his total monthly income is $700.A sales representative visits his home,selling a water purification system.Mike signs a contract that calls for monthly payments of $500 for the next 10 years.The water system is worth no more than $1000.Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water.How would a court most likely describe this contract?
A)The contract is fully enforceable as written.
B)The contract is unenforceable because it is unconscionable.
C)The contract is enforceable, but only up to the value of the water system.
D)The contract is unenforceable because it is exculpatory.

Question

Quizplus · Accepted Answer

The contract is likely to be considered unconscionable because Mike, who is on disability and has a low income, was taken advantage of by the sales representative who sold him a water purification system that is worth no more than $1000 but requires monthly payments of $500 for the next ten years. The sales representative may have used deceptive tactics to make Mike believe that he was signing a permission slip, when in fact he was signing a contract for an expensive water system that he cannot afford. This would make the contract unfair and unenforceable.

Mike Owns a House in a Poor Area of a Large