Remco Enterprises, Inc. v. Houston

Alice Houston (defendant), a 20-year-old single mother of three with a ninth-grade education, signed a rent-to-own contract with Remco Enterprises, Inc. (Remco) (plaintiff) for a television, agreeing to pay $17 a week for 104 weeks (totaling $1,768) to eventually own it, with Remco servicing the television and no credit check or down payment required. The television's retail price was $850 and its wholesale value only $500. Houston could cancel anytime by returning the television but instead stopped paying without returning it. Remco sued to recover the television and overdue payments; Houston argued the contract was unconscionable. The trial court found no unconscionability but also ruled Houston already owned the television outright, and both sides appealed.