Williams v. Walker-Thomas Furniture Co.

Walker-Thomas Furniture Co. (plaintiff) leased furniture to customers on installment plans, keeping title until all payments were made. Every lease contained a clause under which each new purchase revived a balance on all prior purchases, so that a default on the newest item let Walker repossess everything the customer had ever bought. Williams (defendant) bought a stereo, quickly defaulted, and Walker sued to repossess the stereo plus all her earlier purchases. The trial court and an intermediate appellate court entered judgment for Walker. Williams and other defendants appealed.

Whether a contract that is unconscionable at the time of its formation is enforceable.