Indiana § 24-7-6-5 - Unconscionable agreements

§ 24-7-6-5. Unconscionable agreements

Sec. 5. (a) If the court as a matter of law finds the rental purchase agreement or any clause of a rental purchase agreement to have been unconscionable at the time it was made the court may:

(1) refuse to enforce the rental purchase agreement;

(2) enforce the remainder of the rental purchase agreement without the unconscionable clause; or

(3) limit the application of any unconscionable clause to avoid an unconscionable result.

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

(c) For the purposes of this section, a rental payment, charge, or practice expressly permitted by this article is not in itself unconscionable.

As added by P.L.254-1987, SEC.1.

IC 24-7-7Chapter 7. Enforcement; Adjustment in Maximum Fees

24-7-7-1Enforcement by department; civil penalty 24-7-7-2Record keeping requirements; lessor's ownership rights; examinations and investigations 24-7-7-3Assurance of discontinuance of misconduct 24-7-7-4Repealed