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.