41-02.1-08. (2A-108) Unconscionability.
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/nd/title-41/chapter-41-02-1-leases/41-02-1-08·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. If the court as a matter of law finds a lease contract or any clause of a lease contract
to have been unconscionable at the time it was made, the court may refuse to enforce
the lease contract, or it may enforce the remainder of the lease contract without the
unconscionable clause, or it may so limit the application of any unconscionable clause
as to avoid any unconscionable result.
2. With respect to a consumer lease, if the court as a matter of law finds that a lease
contract or any clause of a lease contract has been induced by unconscionable
conduct or that unconscionable conduct has occurred in the collection of a claim
arising from a lease contract, the court may grant appropriate relief.
3. Before making a finding of unconscionability under subsection 1 or 2, the court, on its
own motion or that of a party, shall afford the parties a reasonable opportunity to
present evidence as to the setting, purpose, and effect of the lease contract or clause
thereof, or of the conduct. 4. In an action in which the lessee claims unconscionability with respect to a consumer
lease:
a. If the court finds unconscionability under subsection 1 or 2, the court shall award
reasonable attorney's fees to the lessee.
b. If the court does not find unconscionability and the lessee claiming
unconscionability has brought or maintained an action the claimant knew to be
groundless, the court shall award reasonable attorney's fees to the party against
whom the claim is made.
c. In determining attorney's fees, the amount of the recovery on behalf of the
claimant under subsections 1 and 2 is not controlling.
41-02.1-09. (2A-109) Option to accelerate at will. 1. A term providing that one party or that party's successor in interest may accelerate
payment or performance or require collateral or additional collateral "at will" or "when
he or she deems himself or herself insecure" or in words of similar import must be
construed to mean that the party has power to do so only if the party in good faith
believes that the prospect of payment or performance is impaired. 2. With respect to a consumer lease, the burden of establishing good faith under
subsection 1 is on the party who exercised the power. Otherwise, the burden of
establishing lack of good faith is on the party against whom the power has been
exercised.
41-02.1-10. (2A-201) Statute of frauds. 1. A lease contract is not enforceable by way of action or defense unless:
a. The total payments to be made under the lease contract, excluding payments for
options to renew or buy, are less than one thousand dollars; or
b. There is a record, signed by the party against whom enforcement is sought or by
that party's authorized agent, sufficient to indicate that a lease contract has been
made between the parties and to describe the goods leased and the lease term. 2. Any description of leased goods or of the lease term is sufficient and satisfies
subdivision b of subsection 1, whether or not it is specific, if it reasonably identifies
what is described. 3. A record is not insufficient because it omits or incorrectly states a term agreed upon,
but the lease contract is not enforceable under subdivision b of subsection 1 beyond
the lease term and the quantity of goods shown in the record. 4. A lease contract that does not satisfy the requirements of subsection 1, but which is
valid in other respects, is enforceable:
a. If the goods are to be specially manufactured or obtained for the lessee and are
not suitable for lease or sale to others in the ordinary course of the lessor's
business, and the lessor, before notice of repudiation is received and under
circumstances that reasonably indicate that the goods are for the lessee, has
made either a substantial beginning of their manufacture or commitments for their
procurement;
b. If the party against whom enforcement is sought admits in that party's pleading,
testimony, or otherwise in court that a lease contract was made, but the lease
contract is not enforceable under this provision beyond the quantity of goods
admitted; or
c. With respect to goods that have been received and accepted by the lessee. 5. The lease term under a lease contract referred to in subsection 4 is:
a. If there is a record signed by the party against whom enforcement is sought or by
that party's authorized agent specifying the lease term, the term so specified;
b. If the party against whom enforcement is sought admits in that party's pleading,
testimony, or otherwise in court a lease term, the term so admitted; or
c. A reasonable lease term.