Question 1

How is unconscionability used as a defense in Florida consumer contracts?

Accepted Answer

Consumer defense: a FL consumer can raise unconscionability as a defense to enforcement of an unfair contract. Common contexts: arbitration clauses (the consumer was required to waive their right to sue in court; the arbitration clause is one-sided and limits the consumer’s remedies), limitation of liability (the contract limits the seller’s liability to the purchase price; eliminating the consumer’s right to consequential or incidental damages), class action waivers (the contract prohibits class actions; effectively preventing the consumer from pursuing small claims), and auto-renewal (the contract automatically renews without adequate notice; the consumer is locked in).

Question 2

What consumer protections exist against unconscionable contracts in Florida?

Accepted Answer

Protections: FDUTPA (Section 501.204: the FL Deceptive and Unfair Trade Practices Act: prohibits unconscionable acts or practices in trade or commerce), UCC (Section 672.302: unconscionability in the sale of goods), common law (the court can refuse to enforce unconscionable contract provisions), and federal law (the Federal Trade Commission Act: prohibits unfair or deceptive acts affecting commerce; TILA: protects consumers in credit transactions). Remedies: actual damages, attorney fees (FDUTPA: Section 501.2105), injunctive relief, and declaratory relief (the court declares the provision unconscionable and unenforceable).

Question 3

What factors do Florida courts consider in consumer unconscionability?

Accepted Answer

Factors: the consumer’s education and sophistication (less sophisticated consumers receive more protection), the availability of alternatives (was the consumer able to shop for better terms?), the conspicuousness of the challenged terms (were the terms hidden in fine print?), the relative bargaining power (a large corporation vs. an individual consumer), and the commercial reasonableness of the terms (do the terms serve a legitimate business purpose or are they merely exploitative?). FL courts: are increasingly willing to find unconscionability in consumer contracts, especially involving arbitration and class action waivers.

Unconscionability Defense Consumer Contract

Unconscionability Defense in FL Consumer Contracts

Common Contexts

FL Protections

Court Factors

Related Terms

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