Exam 13: Contracts: Performance, Remedies, and Rights

Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from for its clients. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD'S DEBT."

The FDCPA is not applicable to the collection of judgments.

Which of the following sections of the federal bankruptcy laws deals with consumer debt adjustment plans?

Contracts by minors to enter the military are generally viewed as unenforceable.

Weldon Newfield was having a custom home built. He had a list of certain materials the contractor was to use in building the $270,000 home. Newfield was in Europe and the contractor could not find "Reading Copper Pipe" - one of the required materials. Since Newfield could not be reached and the contractor was under a time schedule, the decision was made to use another brand of copper pipe. When Newfield returned and learned of the problem, he refused to pay any remaining amounts due on the contract ($235,000). Can Newfield do that?

If a consumer requests a credit reporting agency to correct his/her credit report:

Compensatory damage formulas are provided under the UCC.

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

In a relationship of dependence, the failure to deal fairly can result in liability for the party controlling the contract term.

Fraud is misrepresentation with intent to mislead or deceive.

Discuss why recission is an appropriate remedy for certain TILA violations rather than damages.

An example of a condition precedent in an audit contract is access by the auditor to financial information.

Attorneys' fees are an example of liquidated damages.

Cindy Nanson had a contract with Bob Greenly for Bob to repay Cindy $2000 plus interest by July 1986. It is now August 1990 and Cindy has not received any payment. Cindy wishes to file suit to collect the $2000. Bob reminds her that the statute of limitations for contract suits is four years. Cindy's contract with Bob is:

Which of the following statements (if later established as untrue) would constitute a misrepresentation defense to contract formation?

The Fair Credit Reporting Act regulates creditors.

"Only those on the cutting edge of technology have this product," is an example of puffing.

The failure to make a timely investigation into a consumer's question about his/her credit report is a violation of the FCRA.

The FDCPA applies to collection agencies and original creditors.

James Krieg has finished law school but has unsuccessfully taken the bar exam twice. Krieg is running low on patience and cash. He has begun writing wills to see him through this time of crisis and is charging $200 per will. Some of his will clients have refused to pay Krieg and he wishes to take them to a small claims court. Which of the following statements is true?