What about contracts printed in small type on the back of forms and airline tickets?

You’ve seen the small print on the back of a sales receipt with the list of rules for refunds. In fact, many of these small print contracts will actually state that by purchasing that item, you are agreeing to the store’s terms of sale. Many courts have been allowing these so called “contracts of adhesion” or “take it or leave it” to be binding.

Typically, courts will uphold provisions such as terms of sale, arbitration clauses, and terms of refund or cancellation of sale. These provisions are considered reasonable and more instructional in nature than actually binding. For instance, sales receipts may state that the store will not return an item without a receipt. This is a retailer’s right and something that they did not even have to tell you. Instead, they chose to place it on the back of the receipt, in small print, to encourage you to keep your receipt in case the purchase is defective.

The court will consider whether the small print was manifestly unfair or unreasonable when determining whether it was valid. For instance, if a car dealer places small print in a contract stating that you waive your right for a claim under the Lemon Laws, this would be considered manifestly unfair, as it is removing a protection placed in the law for consumers. In addition, contracts that violate a law or that are against public policy are also considered invalid. For example, if your optometrist’s contract states some added charges that will be sent to your insurance company that are not valid, this is a violation of law known as insurance fraud, and it will not be considered valid. As a general rule, if a contract contains any fishy provisions, whether in small print or regular print, it is best to consult with an attorney to avoid future problems with that vendor.

Case Studies: Understanding Contracts in Small Print – Unraveling The Implications and Protections

Case Study 1: Contracts of Adhesion

In this case, a consumer encounters contracts printed in small type on the back of forms, such as sales receipts or airline tickets. These contracts are often referred to as contracts of adhesion or “take it or leave it” contracts. While courts generally consider such contracts to be binding, they also assess whether the provisions within the small print are manifestly unfair or unreasonable.

For example, if a contract includes provisions that violate consumer protection laws or public policy, they may be deemed invalid. Consumers should carefully review the small print and consult with an attorney if any provisions seem questionable.

Case Study 2: Reasonableness of Terms

Courts typically uphold reasonable provisions stated in small print contracts. Examples include terms of sale, arbitration clauses, and refund or cancellation policies. While these provisions may be enforceable, the court may consider whether the language was clear and conspicuous, ensuring that consumers had a reasonable opportunity to review and understand the terms.

For instance, if a sales receipt states that the store will not accept returns without a receipt, this provision is generally considered reasonable, as it informs consumers of the store’s policy.

Case Study 3: Protecting Consumer Rights

Consumers should be vigilant in assessing the fairness and reasonableness of small print contracts. If a provision appears to violate consumer protection laws, remove legal rights, or contravene public policy, it is advisable to seek legal advice. An attorney can review the contract, identify any potential issues, and guide consumers on how to protect their rights.

Consulting an attorney before entering into a contract can help avoid future problems and ensure that consumers understand their rights and obligations.​