Nebraska Uniform Commercial Code 2-302

UCC 2-302

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.

Source

  • Laws 1963, c. 544, Art. II, § 2-302, p. 1717.

Annotations

  • Summary judgment was proper where liability was admitted, there is no issue of bad faith, and agreement is not unconscionable. Grantham v. General Tel. Co., 191 Neb. 21, 213 N.W.2d 439 (1973).

  • Discussed in opinion holding Uniform Commercial Code applicable rather than strict tort liability in case involving damage to all property. Hawkins Constr. Co. v. Matthews Co., Inc., 190 Neb. 546, 209 N.W.2d 643 (1973).

  • The issue of whether a provision of express warranty is unconscionable presents a question of law for the court. Melcher v. Boesch Motor Co., 188 Neb. 522, 198 N.W.2d 57 (1972).

  • A disclaimer clause in a family settlement agreement will not necessarily bar recovery for fraud. Abbott v. Abbott, 188 Neb. 61, 195 N.W.2d 204 (1972).

  • So long as sufficient evidence has been adduced concerning the commercial setting, purpose, and effect of a clause or contract, subsection (2) of this section does not require that a special hearing be held to determine whether a limitation of remedies is unconscionable. The issue may be raised at any time in the proceeding. Adams v. American Cyanamid Co., 1 Neb. App. 337, 498 N.W.2d 577 (1992).