Haw. Rev. Stat. § 490:2-302

Current through Act 7 of the 2024 Legislative Session

Section 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.

HRS § 490:2-302

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.

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 Haw. 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.