Frostifresh Corp. v. Reynoso
Supreme Court, Appellate Term, Second Department, New York
281 N.Y.S.2d 964 (1967)
A Spanish-speaking Frostifresh Corp. (plaintiff) salesman sold Reynoso (defendant), also a Spanish speaker, a refrigerator-freezer for $1,145.88 under an English-only installment contract, despite Reynoso telling the salesman in their Spanish-language negotiation that he was about to lose his job and couldn't afford it; the salesman assured him commissions from referrals would cover the cost. Reynoso defaulted after paying only $32, Frostifresh sued for breach, and at trial Frostifresh admitted the unit's actual cost to it was only $348; the trial court found the contract void for unconscionability and limited Frostifresh's recovery to its actual cost minus the amount paid, and Frostifresh appealed.
Whether a seller may still recover its net cost, a reasonable profit, and related charges for goods sold under a contract that is void for unconscionability.