State Court
•4 min read
California Supreme Court
California Supreme Court Clarifies Unconscionability Standards
The California Supreme Court ruled February 2, 2026, in Fuentes v. Empire Nissan, Inc., clarifying how courts should analyze illegible contract terms when determining unconscionability. The court held that a contract's format is generally irrelevant to substantive unconscionability analysis but requires close scrutiny of difficult-to-read contract terms.
•Contract formatting is generally irrelevant to substantive unconscionability analysis
•Courts must closely scrutinize terms in difficult-to-read contracts for unfairness
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