Thomas Edison State College
Amy, a 20-year-old college student, went to High Note, a large store specializing in electronics, to buy a home theater setup. The salesman told her that she could rent to own the Alpo Theater Model XL2 if she made lease payments of a mere $25 a week for 100 weeks and a final payment of $500. Without shopping at any other store, Amy signed the contract to “rent to own” the Alpo theater under the terms discussed above. The next week she was window-shopping at another electronics store and saw the same theater for $1000. She then tried to cancel her contract with High Note, but High Note refused. Amy alleges that the contract is unconscionable because it calls for a sales price several times greater than the prevailing market price of the Alpo XL2.
Discuss whether this contract is likely to be considered unconscionable.
Will Amy’s station as a college student impact the outcome of this case?
What are the laws involving sales contracts and rights of the buyer?
This case will be decided on legal grounds, but would the outcome be different if ethical considerations came into play?
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