Part I: A new client has come into the office and is very upset. Alex Smith recently purchased a freezer from Star-Rent-to-Own. Alex thinks he may have been the recipient of a bad contract.
Six months ago, Alex and Sandra Smith signed an agreement with Star Rent-to-Own to purchase a freezer. The Smiths signed an agreement stating that they would make 8 monthly payments at $100. The Smiths thought this price was a bit high, but knew they could make the $100 payment each month. The freezer was delivered the next afternoon.
During the fifth month of their contract, Alex began performing online research in order to purchase an identical freezer as a gift for his mother. Alex learned that the freezer is sold at Lowes, Home Depot, and Wal-Mart. The price listed by each retailer ranges from $229 to $249. Alex and Sandra were heartbroken that they were paying more than triple the cost of other retailers.
Alex and Sandra have already paid $600 on the contract. At this point they would like to avoid making the final 2 payments. Before the attorney can make a decision on whether or not to take the case, the attorney needs to make sure that the Virginia courts apply a two-prong test for unconscionability. The case that the attorney learned this two-prong test from is Galloway v. Galloway, 622 S.E.2d 267 (Va. Ct. App. 2005).
Read Galloway, then locate 2 additional cases that examine the two-prong test for unconscionability. Draft 1 paragraph (4–5 sentences) for each of the additional cases. Each paragraph should include a sentence that explains whether the court applies the two-prong test for unconscionability.
Part II: Assume that the attorney and the Smiths are Christians. Draft a paragraph explaining whether a Christian should seek to get out of a contract.
