''Williams v. Walker-Thomas Furniture Co.'', 350 F.2d 445 (D.C. Cir. 1965), was a court opinion, written by
Judge J. Skelly Wright, that had a definitive discussion of
unconscionability
Unconscionability (sometimes known as unconscionable dealing/conduct in Australia) is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining ...
as a defense to enforcement of
contracts
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...
in
American
American(s) may refer to:
* American, something of, from, or related to the United States of America, commonly known as the "United States" or "America"
** Americans, citizens and nationals of the United States of America
** American ancestry, pe ...
contract law. As a staple of first-year
law school
A law school (also known as a law centre or college of law) is an institution specializing in legal education, usually involved as part of a process for becoming a lawyer within a given jurisdiction.
Law degrees Argentina
In Argentina, ...
contract law
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...
courses, it has been briefed extensively.
It flows from interpretation of the
Uniform Commercial Code
The Uniform Commercial Code (UCC), first published in 1952, is one of a number of Uniform Acts that have been established as law with the goal of harmonizing the laws of sales and other commercial transactions across the United States through UC ...
§ 2-302 (1954) and is relevant for the
Restatement (Second) of Contracts
The Restatement (Second) of the Law of Contracts is a legal treatise from the second series of the Restatements of the Law, and seeks to inform judges and lawyers about general principles of contract common law. It is one of the best-recognized and ...
§ 208.
Facts
The case involved Walker-Thomas Furniture Company (Washington, D.C. at 7th St. & L St. NW) extending credit to Williams for a series of furniture purchases made between 1957 and 1962. Williams had been paying monthly installments for several years, before finally defaulting on a payment after purchasing a stereo. The contract that Williams had signed with Walker-Thomas stipulated that the purchaser cannot own any item until their entire balance has been paid off. When Williams defaulted on the contract in 1962, Walker-Thomas then tried to repossess all the furniture that Williams had purchased since 1957. The District of Columbia Court of Appeals ruled that the lower court could rule the contract unconscionable and refuse to enforce it, and returned the case to the lower court to decide whether or not the contract was in fact unconscionable.
Judgment
J. Skelly Wright
James Skelly Wright (January 14, 1911 – August 6, 1988) was a United States circuit judge of the United States Court of Appeals for the District of Columbia Circuit and previously was a United States district judge of the United States District ...
held that the case needed to be sent back to trial to determine further facts, but in doing so, he held that a contract may be set aside if it was procured by unconscionable means.
Significance
This case is often used by legal professors in the United States to question their students' ideology or presumptions. It is also used as a
case study
A case study is an in-depth, detailed examination of a particular case (or cases) within a real-world context. For example, case studies in medicine may focus on an individual patient or ailment; case studies in business might cover a particular fi ...
in some
modern economics
Economics () is the social science that studies the production, distribution, and consumption of goods and services.
Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes ...
classes.
Course syllabus, ECON 330, Bucknell University official web site
Accessed March 27, 2008.
See also
*''Lloyds Bank Ltd v Bundy
is a landmark case in English contract law, on undue influence. It is remarkable for the judgment of Lord Denning MR who advanced that English law should adopt the approach developing in some American jurisdictionsFor America, see the case, ''Wil ...
''
*'' Tunkl v. Regents of the University of California''
60 Cal 2d 92
383 P2d 441 (1963) (Mr. Tunkl's wife sued for damages after her husband was admitted to a charitable hospital after signing a waiver for any negligence, and whose life was lost in an operation. Tobriner J held that the exemption was invalid on the ground that Mr. Tunkl has far inferior bargaining power.)
Notes
External links
{{United States contract case law
United States contract case law
United States Court of Appeals for the District of Columbia Circuit cases