Legal Question in Consumer Law in California

Unfair Contract

I am trying t cancel a service for live answering service that I set up on March 3, 2005. I sent a 30-day written cancellation so that I could get my refund. The supervisor said I have to keep the account for one year. There was nothing in the contract that specified the terms of the contract except that she pointed to me the followings to me at the end of the contract: It read:

*CANCEL CONTRACT � SUBSCRIBER AGREES TO GIVE A MINIMUM OF 30-DAY WRITTEN NOTICE TO TERMINATE SERVICE AND/OR CONTRACT. ORAL NOTICE TO CANCEL WILL NOT BE ACCEPTED. IT IS THE SUBSCRIBERS RESPONSIBILITY TO VERIFY NOTICE HAS BEEN RECEIVED AND PROCESSED. IT IS AGREED THAT CANCEL DATE FOR BILLING WILL BE THE 1ST OF THE NEXT BILLING MONTH AFTER CANCEL GDATE, EVEN IF CANCEL DATE WOULD EXCEED THE 30-DAY NOTICE MINIMUM. (NO MID-MONTH CANCEL DATES ARE ACCEPTED) *ACTIVATION FEE OF $150.00 PER ACCT ($350.00 FOR ORDER ENTRY/SPECIAL USE TYPE ACCOUNTS) WILL BE CHARGED IF ACCOUNTS ARE SENT TO COLLECTION OR IF SERVICE NOT ACTIVE FOR ONE (1) YEAR.

I am confused with this contract because it was suppose to be month to month not one-year contract. There was no place in the contract that says it is one year contract.

The contract is deceptive. I need help.

BB


Asked on 11/03/05, 6:34 pm

4 Answers from Attorneys
Daniel Harrison Berger Harrison, APC

Re: Unfair Contract

I would be interested in reviewing your contract. This may be an illegal liquidated damages clause. For example, if you cancel one day before the year, you would owe the full amount? That's ridiculous. Give us a call or email. Where is the company located?

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Answered on 11/04/05, 1:54 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Unfair Contract

Under the language you posted, while you could cancel with 30 days written notice, you would owe the activation fee ($150 or $350).

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Answered on 11/03/05, 6:40 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Unfair Contract

I don't see that the contract is "unfair" or "deceptive," as you stated, at least the portion you quoted. It appears from the provision that you can, in fact, cancel with 30 days notice. However, it also states that the activation fee will be charged if service not active for one year. You agreed to these terms when you, presumably, signed the contract. Of course, a review of all paperwork would be required for a firm opinion but from the portion you quoted it looks like you can cancel before the year is up, but owe a fee.

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Answered on 11/03/05, 6:48 pm
H.M. Torrey The Law Offices of H.M. Torrey

Re: Unfair Contract

from the facts you have given so far, including the provision you cited, you definitely are well within your rights to challenge this company's attempt to bill you excessively for charges not mentioned in the agreement. however, your best option would be to have an attorney review the contract in its ENTIRETY to fully advise you on your rights and/or obligations within the text. You may be overlooking something very important, or they simply may be con artists period. an attorney will be of GREAT help to you here. If you would like further assistance, contact us directly today.

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Answered on 11/03/05, 7:10 pm


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