| Volume 71 Number 6 |
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The People’s Lawyer’s Tip of the Day
A living trust is a legal device to assist people who want to avoid some of the problems and costs involved with probate. A living trust is not for everyone. If you think a living trust may be right for you, speak with an attorney and discuss all your options. First, however, take a look at some of the living trust scams that are targeting senior consumers. Click here for more.
Vehicle Odometer Fraud Investigation
Despite the many laws protecting consumers against odometer fraud, there is still a risk of being a victim when you buy a used vehicle. When sellers roll back the miles on a vehicle, they can artificially increase the market value. For example, a 2010 Honda Accord V6 EX with 10,000 miles sells for about $18,000. The same car with 70,000 miles sells for about $14,000. In fact, many vehicles make their way into the hands of unsuspecting dealers after the odometer has already been rolled back. CBS News did an undercover investigation, revealing the ease with which one man was able to roll back odometer on hundreds of vehicles. Check it out! Click here for more.
Arbitration: Consumer Contracts
Do you have a dispute with your credit card company? Are you having problems with your cell phone carrier? Chances are you'll be required to settle that dispute outside of court. Credit card and cell phone contracts are just two of many types of consumer contracts containing "mandatory arbitration" provisions. Most consumers don't even know they've agreed to mandatory binding arbitration until they have a problem. But does it matter? Even if you don't want to agree to the arbitration provision to begin with, you probably don't have a choice. Find out why. Click here for more.
Your Money
What is the value of reducing or foregoing expenses? Click here for more.
For the Lawyers
Condo purchasers waited too long to assert statutory rescission rights. The Sixth Circuit held that condominium purchasers waited too long to exercise their right to rescind their contract pursuant to federal law requiring certain disclosures in land sales. More than two years after signing the agreement, the plaintiffs sued to rescind under the Interstate Land Sales Full Disclosure Act. According to the plaintiffs, the developer violated the Act by failing to provide them with a property report. Section 1703(c) of the Act generally requires the exercise of rescission rights within two years of signing. The court agreed that the action was untimely under the statute, rejecting the plaintiffs’ argument that the two-year limit was tolled by the developer’s failure to provide them proper notice of their right to rescind in violation of §1711 of the Act. “We hold that a purchaser or lessee must comply with both §1703(c)’s two-year limit for exercising the right of rescission and §1711(b)’s three-year limit for filing suit based on the seller’s refusal to honor the buyer’s rescission.” While the court concluded that the plaintiffs’ statutory rescission action was untimely, it remanded the matter for the trial court to consider whether the plaintiffs were entitled to equitable rescission. Click here for more.