Wisconsin Auto Title Loans, Inc. v. Jones

Jones (defendant), indigent and needing money urgently, took an $800 loan from Wisconsin Auto Title Loans (plaintiff) at a 300% APR, secured by his car title, under a standardized take-it-or-leave-it contract. The arbitration clause required Jones's disputes to go to binding arbitration and made him front the first $125 of any filing fee, while letting Wisconsin Auto bring its own repossession or payment claims directly in court. After Jones defaulted, the lender sued to recover the car; the circuit court found the arbitration provision unconscionable, and the court of appeals affirmed.

Whether a contract may be unconscionable if one party does not have meaningful choice, and the contract terms are unreasonably favorable to the other party.