Suppose an internet company sells a low-income family a freezer full of meat and other foods for $3,500, with monthly payments for 60 months at 20 percent interest. the internet company advertises the freezer and the groceries as a good, convenient bargain. however, the actual cost of the freezer and the food is only $1,000.

An unconscionable contract

Explanation:

An unjust treatment occurs here.

This type of contract is termed unconscionable in law because it leaves one party (the low income family) with no choice due to major differences in their bargaining power between the parties to accept the contract.

However, considering the circumstances in this example:

1. The contract is contrary to good conscience because of the high interest rate.

2. And because no reasonable or informed person would otherwise agree to it.

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