Legal Question in Technology Law in California

Required signatures from applicants applying for credit

My company offers medical and pharmaceutical products to physicians via the Internet. As one payment option, we are allowing physicians to apply for credit directly on our website. However, I heard from other vendors that federal laws require the applicant to provide real signatures on the application. Is this law specific to my line of business or is this standard requirement for all credit application.


Asked on 12/02/99, 5:07 pm

1 Answer from Attorneys

John Hayes The John Hayes Law Offices

Re: Required signatures from applicants applying for credit

Credit card companies have been taking phone applications for as long as I can remember. And now you can apply for a credit card online. So I do not see any problem with what you are doing. The only potential legal problem you may have is if a physician defaults on his payments he may claim he never signed anything so therefore there in no signed contract. So you might want to send something for them to sign after their credit is approved. But if they have to sign an invoice upon receipt of the product this would constitute a contract for the product that was charged to their account and this would be sufficient in a court of law. If you have any questions or problems in the future please feel free to email me directly. I specialize in business and contract law. Good luck.

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Answered on 12/02/99, 9:37 pm


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