Contracts and consumer law act united states

This Restatement clarifies how the classic principles of contract law embodied in the Restatement of the Law Second, Contracts, have evolved and been applied by courts adjudicating consumer-contract disputes. The principles of fairness and anti-deception that guide regulatory consumer-protection law, to the extent they are consistent with the common law of contracts and the Uniform Commercial Code, are also captured by the Restatement.

Oren-Bar-Gill, Harvard Law School, Cambridge, MA

Omri Ben-Shahar, University of Chicago Law School, Chicago, IL

Florencia Marotta-Wurgler, New York University School of Law, New York, NY

This Restatement clarifies how the classic principles of contract law in the Restatement of the Law Second, Contracts, have been applied by courts adjudicating consumer-contract disputes. Consumer contracts have presented a challenge for the law of contracts because the asymmetries in the parties’ information, sophistication, and incentives, coupled with the practice of standard-form contracting, create a risk of abuse by businesses, as it is neither rational nor feasible for most consumers to familiarize themselves with the terms of a given contract. This Restatement restates the various techniques that courts have developed to police for abuse while still endorsing and enforcing standard-form contracts. The principles of fairness and anti-deception that guide regulatory consumer-protection law, to the extent they are consistent with the common law of contracts and the UCC, are also captured by the Restatement.

Table of Contents Introduction § 1. Definitions, Scope, and Outline § 2. Adoption of Standard Contract Terms § 3. Adoption of a Modification of Standard Contract Terms § 4. Interpretation and Construction of Consumer Contracts § 5. Discretionary Obligations § 6. Unconscionability § 7. Deception § 8. Affirmations of Fact and Promises that Are Part of the Consumer Contract § 9. Standard Contract Terms and the Parol-Evidence Rule § 10. Effects of Derogation from Mandatory Provisions