Okla. Stat. tit. 12A § 2A-108

Current through Laws 2024, c. 378.

Section 2A-108 - Unconscionability

(1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at the time it was made the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

(2) With respect to a consumer lease, if the court as a matter of law finds that a lease contract or any clause of a lease contract has been induced by unconscionable conduct or that unconscionable conduct has occurred in the collection of a claim arising from a lease contract, the court may grant appropriate relief.

(3) Before making a finding of unconscionability under subsection (1) or (2) of this section, the court, on its own motion or that of a party, shall afford the parties a reasonable opportunity to present evidence as to the setting, purpose, and effect of the lease contract or clause thereof, or of the conduct.

(4) In an action in which the lessee claims unconscionability with respect to a consumer lease:

(a) If the court finds unconscionability under subsection (1) or (2) of this section, the court shall award reasonable attorney's fees to the lessee.

(b) If the court does not find unconscionability and the lessee claiming unconscionability has brought or maintained an action he knew to be groundless, the court shall award reasonable attorney's fees to the party against whom the claim is made.

(c) In determining attorney's fees, the amount of the recovery on behalf of the claimant under subsections (1) and (2) of this section is not controlling.

Okla. Stat. tit. 12A, § 2A-108

Added by Laws 1988, HB 1683, c. 86, § 8, eff. 11/1/1988.

Oklahoma Code Comment

This section, as to non-consumer leases, tracks the similar provision in § 2-302 of UCC Article 2. 1969 U3C § 5-108 also closely copies UCC § 2-302, but includes consumer leases. Thus the Oklahoma U3C in 14A Oklahoma Statutes § 0-108 does no more than expressly apply the concept of unconscionability to a consumer lease, which might be the result under 12A Oklahoma Statutes §§ 2-102 and 2-302 considered alone. However, part of §2A-108 also is taken from the 1974 U3C, which generally is more favorable to consumers than the earlier version of the U3C enacted in Oklahoma. Thus §2A-108(2) and (4) extend protection in connection with consumer leases beyond merely applying the concept of unconscionability to such leases. For this reason, a non-uniform Oklahoma amendment to § 2A-104(2) reverses the normal rule as to the paramountcy of a consumer protection law, and instead makes § 2A-108 paramount over U3C § 5-108.

On the other hand, U3C § 6-111(1), which allows the Administrator under the U3C to bring an action for unconscionability in connection with a consumer lease, is unaffected since § 2A-108 only deals with a private right of action by a consumer. The scope of U3C § 6-111(1) and of § 2A-108(1) and (2) are similar as to terms and conduct reached.

There is no unconscionability provision in the rental-purchase act, 59 Oklahoma Statutes § 1950 et seq. Thus this section furnishes the only protection for a consumer lease that also is a rental-purchase agreement under 59 Oklahoma Statutes § 1951(6). Under Article 2A it is possible but not certain that a rental-purchase agreement, at least at some point, constitutes a secured transaction and not a lease. See § 2A-103(1)(j), Official Comment. In that event, Article 2A would not apply. However, as 59 Oklahoma Statutes §1951(6) states a rental-purchase agreement cannot constitute a security interest, such agreements thus should be considered as leases under Article 2A if they otherwise meet the definition of lease in § 2A-103(1)(j).

The 1991 amendments make no change here.