IC 24-7-6-5: Unconscionable agreements

Sec. 5. (a) If the court as a matter of law finds the rental purchase agreement or any clause of a rental purchase agreement to have been unconscionable at the time it was made the court may:

(1) refuse to enforce the rental purchase agreement;

(2) enforce the remainder of the rental purchase agreement without the unconscionable clause; or

(3) limit the application of any unconscionable clause to avoid an unconscionable result.

(b) If it is claimed or appears to the court that a rental purchase agreement or any clause of the rental purchase agreement may be unconscionable, the parties shall be afforded a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making the determination.

(c) For the purposes of this section, a rental payment, charge, or practice expressly permitted by this article is not in itself unconscionable.