| Volume 52 Number 6 |
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The People’s Lawyer’s Tip of the Day
If you have been a victim of identity theft there is a way to make sure it never happens again. Texas law allows you to put a "security freeze" on your credit report, preventing an identity thief from using your information. To find out more, Click here for more.
Apple Denies Flaws, Yet Offers Free Case
After weeks of denying problems with the iPhone 4 wraparound antenna design, Apple is going to offer consumers a free case. However, despite the "giveaway," valued at $29 per case, Apple refuses to admit any flaw in the wraparound antenna design. Will the free case be enough to please consumers? Why is Apple refusing to admit a problem? Click here for more.
Study: Toyota Sudden Acceleration Problem
Only a few months ago, it seemed like Toyota was on the verge of disaster. Media and consumers slammed Toyota for an unexplainable sudden acceleration problem. After several high profile media spots showing vehicles accelerating out of control, Toyota issued a massive recall. At the time, experts insisted the problems were a result of mechanical defects or computer error. However, Department of Transportation preliminary studies suggests many accidents were caused by driver error, not mechanical defect. Despite the recent findings, Toyota may never recover from the string of media headlines and the series of high profile recalls. Click here for more.
Consumer Prices Continue to Fall
For the third straight month, the Consumer Price Index has dropped. The Consumer Price Index ("CPI") is used to measure inflation and deflation by following the average price of goods and services purchased by households over long periods of time. Experts use the positive and negative movements of the CPI to analyze the affect of consumer and business trends throughout a specified area. Although consumers can purchase more with the same amount of money when the CPI drops, the long term affect can be devastating. If the CPI continues to trend downward over time, deflation may begin. Although most economists don't believe deflation will happen, it is a relevant and important concern. The last period of pronounced deflation occurred during the Great Depression. For now, the reduced prices may simply be good news for strapped consumers. Click here for more.
Your Money
Should you pay off debt or invest in savings? Click here for more.
For the Lawyers
Arbitration clause with class action waiver unenforceable. The Second Circuit held that an arbitration provision in a student loan agreement cannot be enforced and the plaintiff may pursue a class action. The court found the clause unconscionable because "it is a standard contract of adhesion drafted by a party that had superior bargaining power," the disputes on the allocation between interest and principal "predictably involve small amounts of damages," and plaintiff alleged the two companies were "deliberately carrying out a scheme to cheat large numbers of borrowers out of individually small amounts of money." Click here for more.