Legal Question in Consumer Law in California
What is the "Evergreen Clause"? Our current waste pickup company had us sign a 3yr contract (12/06). They automatically renewed it for an additional 3 years without notifiy us. Due to the economy we are trying to cut our expenses to stay in business. We had found a new company that will charge half of what this other company does. They won't let us stop service citing we were automatically renewed for an additional 3 years. Then it was we had to give them 60 day notice if we were vacating the building, and they would come by and "make sure" we had indeed moved from our present location. Now, we receive a "reduced rate" option, but have to sign another contract for "continuation of existing agreement".
What we have be paying for the past 4 years:
Qty Size Type Freq Monthly Rate Additional Fees* Total
1 2 yrd Trash rental fee $36.29 $16.15 $52.44 52.44
1 2 yrd Trash on call** $55.00 $23.80 $78.80 78.80
Their new "reduced rate" offer:
Qty Size Type Freq Monthly Rate Additional Fees* Total
1 2 yrd Trash 1x month $19.55 $7.82 $27.37 27.37
How in the world can they charge us the 36.29 monthly rental fee; 55.00 on call pick up; then force us to continue service? Oh, and should we give in and continue their service, they'll offer us a cut rate of just 19.55 with a once a month pick up? How can they legall do this????? We were advised to tell them they were in voilation of the "Evergreen Clause", pick up their bin or we will charge them rent for storage. What is our legal stand on this matter?
1 Answer from Attorneys
Read The Friendly Contract. If you sign a contract with an evergreen clause, cancel it in the manner specified in the contract as soon as you sign it.
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