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The American Law Institute’s Restatement of Consumer Contracts: Reporters’ Introduction

Consumer contracts present a fundamental challenge to the law of contracts, arising from the asymmetry in information, sophistication, and stakes between the parties to these contracts—the business and the consumers. On one side stands a well-informed and counseled business party, entering numerous identical transactions, with the tools and sophistication to understand and draft detailed legal terms and design practices that serve its commercial goals. On the other side stand consumers who are informed only about some core aspects of the transaction, but rarely about the standard terms. These consumers enter the transaction mostly for personal or household purposes, without any professional understanding of its legal contours. It is both irrational and infeasible for most consumers to keep up with the increasingly complex terms provided by businesses in the multitude of transactions, large and small, entered into daily both in brick-and-mortar settings and online. There are many benefits to standard-form contracting, even in such asymmetric environments. The efficiencies of mass production and mass distribution of products and services would be hindered if the terms of each transaction with each consumer had to be individually negotiated. These efficiencies can benefit