Legal Question in Business Law in California

reimbursements

I joined a business in telecommunications and paid money to get in. I later found out i was being charged every month and was not aware of this. I read the agreement over and it did state the fees but I had signed up with the company online and over the phone. I was not aware of the additional charges at the time. Is there anyway i can get out of the business and get reimbursed?


Asked on 4/30/08, 9:33 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: reimbursements

Maybe; I would think even probably, but it is not really clear at all what you mean when you say you "joined" a business. This could mean, on the low end of possible significance, that you signed a contract to become a customer.

On the more legally significant end of the spectrum, you could be saying that by "joining" this business, you were lead to believe that you were making an investment whereby you would become a stockholder, partner, or perhaps a franchise holder in the business.

This sounds like an out-and-out fraud, or a scheme that, while not blatantly fraudulent, unfairly relies on fine print and deceptive inducements to generate investments, or perhaps a multilevel marketing or Ponzi-like scheme.

Thus, overall, you may have ways to get out of your agreement, if indeed theres is one that can be enforced. I'd really need more clarification about the sequence of events. Over the phone you can make an oral contract, but its terms are what you know about and agree to at the time. If you get a writtem contract in the mail later, but its terms are different and you haven't signed it and sent back a copy, you are bound by the oral agreement, not the paper they send you.

Overall, I'd think you have a strong legal position versus this promoter, but defining your rights and proposing the best way to avoid getting screwed or beaten up in an enforcement lawsuit would require reviewing all the facts, including whatever promotional material induced you to "pay money to get in"in the first place, and what the promoter is relying upon to try to get you to pay more. Furthermore, it isn't clear whether you are signed up primarily as a client/customer or as an investor, franchisee or other type of co-owner.

Please send more details and I may be able to represent you economically and possibly even get your investment back, with damages and interest.

If you signed up

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Answered on 5/01/08, 12:54 am


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