Legal Question in Business Law in California

Re: eraly termination fee

There may be a city or county here and there which has given a company in the cellular communications or satellite television business a franchise where the company has agreed not to enter into customer contracts involving early-termination fees. Thus, without searching every community's local laws or asking for all their contracts and franchises, I can't say for sure. California may not even permit such local rules; the example I know of was in rural Nevada!

Therefore, my best guess is that both of the companies you name have the full power and right to enter into rate and pricing agreements with their customers containing early termination fees. Cable companies are usually more highly regulated than wireless companies, because the former are considered public utilities and are granted monopoly franchises, like electric and gas utilities, in exchange for rate regulation. Wireless service providers are not utilities nor government-granted monopolies and hence aren't subject to rate or pricing-practices regulation, with the possible exception mentioned above.

Further, if the termination fee is related to the furnishing of merchandise (such as a phone or antenna) or one-time services such as on-site installation, so there is a cost to recover, the termination fee may be fully authorized even if the provider were otherwise regulated. Read your contract, and if you think a charge is unfair, contact the public utilities commission.

Re: eraly termination fee

No. What would make you think that? It is right there in your contract, which was approved by the government lawyers at the PUC.

Re: eraly termination fee

No. What would make you think that? It is right there in your contract, which was approved by the government lawyers at the FCC.