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Remco Enterprises, Inc. v. Houston

Kansas Court of Appeals
677 P.2d 567 (1984)


Facts

Alice Houston (defendant), a 20-year-old single mother with three children and a ninth-grade education, signed a rent-to-own agreement with Remco Enterprises, Inc. (Remco) (plaintiff) for a television. Under the rent-to-own contract, Houston would make weekly payments over a set time period to transform her rental into purchase, and Remco would service the television while Houston was renting it. Remco did not run a credit check on Houston or require a down payment. The contract said that Houston would own the television after paying $17 a week for 104 weeks. Houston could cancel the contract at any time by returning the television. Houston stopped making her weekly payments before the end, but she did not return the television. Remco sued Houston to recover the television and the overdue rental payments. Houston argued that the rent-to-own contract was unconscionable and unenforceable because it would charge her $1,768 for a television with a wholesale value of $500. The television’s retail price was $850. The trial court found that the contract was not unconscionable, but it also held that Houston owned the television and did not need to pay Remco anything more for it. Both parties appealed.

Rule of Law

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Issue

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Holding and Reasoning (Miller, J.)

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