Toker v. Westerman – Case Brief
Toker v. Westerman, 274 A.2d 78 (Union County Ct. 1970).
Case Summary
Parties:
Plaintiff: Toker (on assignment from People’s Foods of New Jersey)
Defendant: Westerman
Facts: Westerman (D) bought a refrigerator from People’s Foods of New Jersey through a door-to-door salesperson. The total price of the unit was $899.98 and included credit life insurance, taxes, and interest. Westerman agreed to an installment sales contract in which his total payments amounted to $1,229.76. After paying $655.87, D refused to pay the remaining balance. People’s Foods assigned its rights to Toker (P) and Toker sued Westerman for breach of contract. D defended the breach of contract claim on the grounds that the purchase price was unconscionable. The reasonable retail price for the unit was $400 at the time of sale. The trial court entered a judgment in favor of P and D appealed.
Issue: Is a flagrantly excessive purchase price sufficient grounds for a finding of unconscionability?
Holding and Rule: Yes. Unconscionability is found in a situation in which there are inequalities so strong, gross, and manifest that they are impossible to justify. In this case the sales price was more than two times the true value of the refrigerator. The court ruled that the amount P had already received from D was adequate compensation and dismissed P’s suit.
Notes: In general, most courts will find that a consumer contract is void for unconscionability in cases of inadequacy of consideration and sharp business practices.