Posted tagged ‘contract’

On The Contract Law: Why is Your Bank so Evil and What Can You Do About It?

2009/11/03

800px-United_States_one_dollar_bill,_reverse Most of us will agree that businesses exist to make a profit. Most of us will also agree that businesses exist because they provide something that a consumer wants to pay for. This model works great for a consumer going to a store to buy an item he can pay cash for 1 time – such as a drill. There are many stores that sell drills, many brands of drills, and many consumers. No particular group can take advantage of any other, and market forces work very well to provide value to the consumer and profit to the businesses.

What happens when a service is purchased for some period of time, such as a bank account, or a cellular phone subscription? Here, the market is more limited in 2 ways.

  1. the number of sellers are very limited in number and in difference in product offering.
  2. the businesses have vast and mighty contracts that give them a level of advantage over the little people not seen since the days of Landlords and Serfs in Europe. (more…)
Advertisements