§490:2-302 - Unconscionable contract or clause.
§490:2-302 Unconscionable contract or
clause. (1) If the court as a matter of law finds the contract or any
clause of the contract to have been unconscionable at the time it was made the
court may refuse to enforce the contract, or it may enforce the remainder of
the contract without the unconscionable clause, or it may so limit the
application of any unconscionable clause as to avoid any unconscionable result.
(2) When it is claimed or appears to the court
that the contract or any clause thereof may be unconscionable the parties shall
be afforded a reasonable opportunity to present evidence as to its commercial
setting, purpose and effect to aid the court in making the determination. [L
1965, c 208, §2-302; HRS §490:2-302]
Law Journals and Reviews
A "Traditional" and "Behavioral"
Law-and-Economics Analysis of Williams v. Walker-Thomas Furniture Company. 26
UH L. Rev. 441.
Case Notes
Discussed, where arbitration agreement was not procedurally
or substantively unconscionable. 381 F. Supp. 2d 1274.
When unconscionability is issue, hearing is mandatory, but
need not be separate hearing. 56 H. 466, 540 P.2d 978.
This section is solely applicable to commercial transactions
concerning the sale of goods; as case did not involve a commercial transaction
relating to the sale of goods, this section was inapplicable to the rescission
of a release in a personal injury action; thus, trial court did not err in
declining to apply this section in its determination whether the release was
unconscionable. 111 H. 413, 142 P.3d 277.