Jones v. Star Credit Corp is one of the most frequently cited and quoted cases in consumer law and a great example how law evolves under our common law system. This case is unusual only because the holding was contrary to older case law. Go to the link above to read the entire case.Facts of the Case: The Joneses, welfare recipients, agreed to buy a freezer for $900 as the result of a salesperson's visit to their home. Sales taxes and financing charges raised the total price to $1,234.80. The freezer's retail value was about $300. Through a novation, the parties replaced the seller with Star Credit Corp. After paying about $620 on the contract, the Joneses filed a suit in a New York state court against Star to have the contract declared unconscionable and reformed. Star claimed that about $820 remained due.The court ruled in favor of the Joneses. The contract was reformed so that they were required to make no further payments.Recall, courts are concerned with the legal adequacy of consideration, not its economic adequacy. As long as there is a bargained for exchange, consideration is adequate and legally sufficient. This is based on the principal that parties should be free to negotiate any deal they want, as long as the consideration is legally adequate.
Discuss the court's rationale for not ruling that the Mr. & Mrs. Jones, as adults, made the decision to purchase the refrigerator of their own free will?
What made the contract between the Joneses and Star Credit unconscionable?