American Contract Law for a Global Age, 2017a

position to all of his patients (or, rather, their owners) from Pethouse and Furry
Friends takes out advertisements in Mid-Cities Magazine, the Fort Worth Star-
Telegram, and the Dallas Morning News –all of which circulate in Arlington, Texas,
announcing Employee’s new position with Furry Friends.
Employer sues to enforce the covenant. What are the arguments for and
against its enforcement?
Problem 16.3
Latke is a recent immigrant to the United States. He speaks very little English,
but gets a job working days as a cleaning person at a hotel, and another washing
dishes in the evening at a restaurant. Each week sends a small amount of money
back home to his family in Ruritania. One Saturday, Latke, who is a big music fan,
goes into Discount Electronics, a retailer. He falls into conversation with a clerk,
another Ruritanian immigrant, who speaks fluent Ruritanian. The clerk shows him
an excellent music system that can be purchased for $500 in cash, or can be purchased
on a rent-to-own basis at $12 a week for two years. Latke signs the rent-to-own
contract, which is printed in both English and Spanish. Other than the price and the
length of the contract, the clerk does not translate any of the terms for Latke, who
does not ask for any translation.
The contract provides that Latke can terminate the contract at any time by
returning the music system, but Discount will keep all payments previously made. It
also provides that if Latke fails to pay but keeps possession of the stereo, all
remaining weekly payments are due immediately to Discount and Latke becomes the
owner of the music system. Finally, the contract provides that if Discount is required
to sue Latke to get its money, Latke will be liable for reasonable collection and
attorneys’ fees.
Latke takes the system home and makes payments for more than a year. At
this point, the music system breaks down. Latke, who thinks he’s already paid more
than the original $500 selling price, stops making payments, but does not return the
music system. Discount brings in a collection agency, which is unable to collect from
Latke. It then sues Latke for the 45 remaining payments ($540), along with $150 in
collection costs and $750 in attorneys’ fees for filing the suit. In this jurisdiction,
attorneys’ fees in contract cases are only recoverable if they are provided for in the
contract.
Latke defends arguing that the contract is unconscionable. What are the
arguments for and against a finding of unconscionability in this case? As this case
involves a sale of goods, be sure to use UCC § 2-302 in your analysis.
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332 CHAPTER V: CONTRACT DEFENSES