Between 2012 and 2017, Williams purchased a number of household items on credit from the Penguin Furniture Co., a retail furniture store. Penguin retained the right in its contracts to repossess an item if Williams defaulted on an installment payment. Each contract also provided that each installment payment by Williams would be credited pro rata (proportional) to all outstanding accounts or bills owed to Penguin.

As a result of this provision, an unpaid balance would remain on every item purchased until the entire balance due on all items, whenever purchased, was paid in full.

Williams defaulted on a monthly installment payment in 2017, and Penguin sought to repossess all the items that Williams had purchased since 2012.

Respond to the following questions:

Is the bargaining power of Penguin too great to assume that the terms of the agreement resulted from a fair negotiation process?

Do the terms of this agreement appear fair and reasonable to both parties?

Has Penguin acted unethically?