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Law School Case Briefs

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Industralease Automated & Scientific Equipment Corp. v. R. M. E. Enterprises, Inc.

Appellate Division of the Supreme Court of the State of New York (1977) | 58 A.D.2d 482; 396 N.Y.S.2d 427; 22 U.C.C. Rep. Serv. (West) 4; 1977 N.Y. App. Div. LEXIS 12432

4 min read

TL;DR: A lessee signed an equipment lease with broad warranty disclaimers after being pressured. The equipment never functioned. The court found the disclaimers unconscionable under the UCC, affirming judgment for the lessee.

Legal Significance: This case establishes that UCC Article 2, including its unconscionability provisions, can apply to equipment leases that are functionally sales, and demonstrates how warranty disclaimers may be deemed unconscionable.

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