White Collor Crimes

Module 1 Assignment 2

Gloria J. Bawcom

ARGOSY UNIVERSIY

Module 1 Assignment 2

If Letisha does not pay and Sudson sues her for breach of contract, what legal argument could be raised in Letisha’s defense against the enforcement of the automatic renewal clause?

Automatic renewal clauses are usually included in the contract or agreement, which states you must give a written notice of termination at least thirty days prior to the expiration of the contract term. If the customer fails to provide a written notice within that specific time frame the contract would automatically renew.

In Letisha case the automatic renewal clause was on the back of her contract and she failed to read it. However the salesperson that Sudson sent to take care of the deal with the washer, and dryer agreement didn’t tell Letisha about any further encloses either.

The only argument Letisha would have is that the salesperson didn’t tell her about the about the additional statement on the back of the agreement which held the renewal clause, but at the same time Letisha didn’t read the entire contract or give a proper termination notice which was a ninety day written notice by certified mail or hand delivered directly to Sudson.

Although there are a few state legislatures that have passed laws that make it difficult for such businesses to rely on automatic renewal clauses. For example in 2000, Illinois adopted the “Automatic Contract Renewal Act “which makes an automatic renewal clause unenforceable unless the clause is “clear and conspicuous. (Steven Dutton, the McLane Law Firm November 2011). If Letisha was to live in one of the states that carries this law then she would have a defense against the case.

What legal argument could be raised by Sudson in support of the enforcement of the automatic renewal clause against Letisha?

The only arguments that Sudson could raise is due to Letisha didn’t provide a proper written notice of termination instead she calls to terminate...