12A:2A-108 - Unconscionability - New Jersey Statutes

12A:2A-108.    Unconscionability    12A: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), 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), 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 the lessee 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) is not controlling. 

L.1994,c.114,s.1.