§ 6-1-1119 — Unconscionability

(1) An equity purchaser or associate may not
facilitate or engage in any transaction that is unconscionable given the terms and
circumstances of the transaction.

(2) (a) If a court, as a matter of law, finds an equity purchaser contract or any
clause of such contract to have been unconscionable at the time it was made, the
court may refuse to enforce the contract, enforce the remainder of the contract
without the unconscionable clause, or so limit the application of any
unconscionable clause as to avoid an unconscionable result.

(b) When it is claimed or appears to the court that the contract or any clause
thereof may be unconscionable, the parties shall be afforded a reasonable
opportunity to present evidence as to its commercial setting, purpose, and effect,
to aid the court in making the determination.

(c) In order to support a finding of unconscionability, there must be evidence
of some bad faith overreaching on the part of the equity purchaser or associate
such as that which results from an unreasonable inequality of bargaining power or
under other circumstances in which there is an absence of meaningful choice for
one of the parties, together with contract terms that are, under standard industry
practices, unreasonably favorable to the equity purchaser or associate.

Legislative History

Source: L. 2006: Entire part added, p. 1343, � 1, effective May 30.