NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 1055

SENATE BILL 323

 

 

AN ACT TO AMEND THE UNIFORM COMMERCIAL CODE, CHAPTER 25 OF THE GENERAL STATUTES OF NORTH CAROLINA, SO AS TO PROVIDE FOR THE SETTING ASIDE OF UNCONSCIONABLE CONTRACTS OR CLAUSES OF CONTRACTS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Chapter 25 of the General Statutes of North Carolina as the same appears in the 1965 Replacement Volume 1D and the 1969 Cumulative Supplement thereto is hereby amended by adding in Article 2 of Chapter 25 a new section, G.S. 25-2-302 to read as follows:

"§ 25-2-302.  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."

Sec. 2.  All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 3.  This act shall be in full force and effect on and after October 1, 1971, and apply to transactions entered into and events occurring on and after that date.

In the General Assembly read three times and ratified, this the 21st day of July, 1971.