515A.1-112 UNCONSCIONABLE AGREEMENT OR TERM OF CONTRACT.
(a) The court, upon finding as a matter of law that a contract or contract clause to which
the declarant or the affiliate of a declarant is a party was unconscionable at the time the contract
was made, may refuse to enforce the contract, enforce the remainder of the contract without the
unconscionable clause, or limit the application of any unconscionable clause in order to avoid
an unconscionable result.
(b) Whenever it is claimed, or appears to the court that such a contract or contract clause is
or may be unconscionable, the parties, in order to aid the court in making the determination, shall
be afforded a reasonable opportunity to present evidence as to:
(1) the commercial setting of the negotiations;
(2) whether a party has knowingly taken advantage of the inability of the other party
reasonably to protect the other party's interests by reason of physical or mental infirmity, illiteracy,
or inability to understand the language of the agreement or similar factors;
(3) the effect and purpose of the contract or clause; and
(4) if a sale, any gross disparity, at the time of contracting, between the amount charged for
the real estate and the value of the real estate measured by the price at which similar real estate
was readily obtainable in similar transactions, but a disparity between the contract price and the
value of the real estate measured by the price at which similar real estate was readily obtainable in
similar transactions does not, of itself, render the contract unconscionable.
History: 1980 c 582 art 1 s 515.1-112; 1986 c 444