medium · LSAT Reading Comprehension

In the law of contracts, the doctrine of unconscionability allows a court to refuse to enforce a contract or a specific clause within it if the terms are so one-sided or oppressive that they 'shackle' the conscience. To establish unconscionability, a party must typically demonstrate both procedural and substantive unfairness. Procedural unconscionability focuses on the circumstances surrounding the formation of the contract, such as a significant inequality in bargaining power, the use of fine print or complex language, or the lack of a meaningful choice for one of the parties. Substantive unconscionability, by contrast, focuses on the actual terms of the contract and whether they are overly harsh or one-sided. The unconscionability doctrine is intended to protect vulnerable parties from being exploited in transactions where they have little or no bargaining power. However, courts are generally reluctant to invoke the doctrine, as it conflicts with the principle of freedom of contract, which holds that parties should be free to set their own terms without judicial interference.

Which of the following best describes the organization of the passage?

  1. A concept is introduced, its two component requirements are unpacked, the aim it serves is identified, and a countervailing principle is acknowledged.
  2. A rule is announced and then a sweeping chronicle is offered showing how courts have steadily expanded it until nearly every consumer agreement is voided.
  3. Two rival legal frameworks are carefully weighed against each other, with one of them ultimately judged superior for better advancing economic efficiency.
  4. A defect in commercial dealings is exposed, a series of remedies that failed is dismissed, and a binding arbitration scheme is endorsed as the cure.
  5. A doctrine's protective purpose is described in detail so that the reader will understand why courts almost always strike down oppressive clauses.

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