§ 26-1-2.1-108 — Unconscionability

Indiana § 26-1-2.1-108

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) If the court as a matter of law finds a
lease contract or any clause of a lease contract to have been
unconscionable at the time it was made the court may refuse to enforce
the lease contract, or it may enforce the remainder of the lease contract
without the unconscionable clause, or it may so limit the application of
any unconscionable clause as to avoid any unconscionable result.
(2) With respect to a consumer lease, if the court as a matter of law
finds that a lease contract or any clause of a lease contract has been
induced by unconscionable conduct or that unconscionable conduct has
occurred in the collection of a claim arising from a lease contract, the
court may grant appropriate relief.
(3) Before making a finding of unconscionability under subsection
(1) or (2), the court, on its own motion or that of a party, shall afford
the parties a reasonable opportunity to present evidence as to the
setting, purpose, and effect of the lease contract or clause thereof, or of
the conduct.
(4) In an action in which the lessee claims unconscionability with
respect to a consumer lease:
(a) If the court finds unconscionability under subsection (1) or (2),
the court shall award reasonable attorney's fees to the lessee.
(b) If the court does not find unconscionability and the lessee
claiming unconscionability has brought or maintained an action
the lessee knew to be groundless, the court shall award reasonable
attorney's fees to the party against whom the claim is made.
(c) In determining attorney's fees, the amount of the recovery on
behalf of the claimant under subsections (1) and (2) is not
controlling.

Legislative History

As added by P.L.189-1991, SEC.3.