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Jones v. Star Credit Corp.

Supreme Court of New York
298 N.Y.S.2d 264 (1969)



Jones (the Joneses) (plaintiffs), who were welfare recipients, entered into an agreement to purchase a home freezer unit following a visit from a home salesman. In addition to the purchase price of $900, the Joneses were charged time credit charges, credit life insurance, credit property insurance and sales tax. As a result, the total price for the refrigerator at the time of purchase was $1,234.80. Uncontroverted evidence at trial demonstrated, however, that the maximum retail value of the freezer was approximately $300. At the time the Joneses commenced their action against the Star Credit Corp. (defendant) (Star) in the New York State Supreme Court, the Joneses had paid off $619.88 of this total and Star claimed that $819.81 remained due as a result of additional charges for an extension of time to pay which brought the total cost of the refrigerator to $1,439.69. The question before the court is whether the exorbitant price term makes the contract unconscionable pursuant to New York's Uniform Commercial Code (UCC).

Rule of Law


Holding and Reasoning (Wachtler, J)

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