Roberto, who did not speak or read English, visited Dart Dodge, a car dealership. Aware that Roberto

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Roberto, who did not speak or read English, visited Dart Dodge, a car dealership. Aware that Roberto was monolingual, Dart’s staff transacted a deal in Spanish. They explained the English-language contract, except for one clause. This clause limited the buyer’s right to seek damages in court to less than $5,000 but did not limit Dart’s right to ask for damages. Roberto bought a Dodge Ram truck and signed the contract.

Is the damages clause in this contract enforceable? No.

The clause is unconscionable. ______________ unconscionability concerns the manner in which a contract is entered into. ______________ unconscionability can occur when a contract unfairly limits one party’s remedy for the other’s breach. Having undertaken to explain the contract in Spanish, Dart’s staff was obliged to do so accurately so Roberto would have a meaningful opportunity to bargain. The failure to do so made the contract ______________ unconscionable. The unfair limit to the buyer’s damages was ______________ unconscionable.

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Business Law Text And Exercises

ISBN: 9780357717417

10th Edition

Authors: Roger LeRoy Miller, William E. Hollowell

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