ORS 72.3020¹
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. [1961 c.726 §72.3020 (Unconscionable contract or clause)]

Notes of Decisions

Unconscionability requires showing that at time of contract forma­tion, terms of agree­ment bore no reasonable rela­tionship to business risk involved and were so one sided as to be oppressive. W. L. May Co., Inc. v. Philco-Ford Corp., 273 Or 701, 543 P2d 283 (1975)

Even assuming court could address issue of conscionability when not pleaded or otherwise claimed, this sec­tion requires parties at least be given opportunity to address issue and to present evidence. Toy Co. Salem, Inc. v. Wood, 109 Or App 265, 819 P2d 312 (1991)

Chapter 72

Law Review Cita­tions

53 OLR 468-473 (1974); 58 OLR 545 (1980)

1 Legislative Counsel Committee, CHAPTER 72—Sales, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors72.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 72, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­072ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information