ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

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Wednesday, February 23, 2005

Throwing the book

A big plaintiffs’ class-action firm is going after Dell Computer and lender CIT, saying that the two "prey on" "unsuspecting" consumers by engaging in a variety of activities.  The two chief complaints seem to be up-selling customers who are attracted by low advertised prices, and advertising favorable credit terms for which most consumers, as it happens, do not qualify.  The complaint charges Dell and CIT with

violating California's Consumer Legal Remedies Act (CLRA) by false advertising and bait-and-switch practices; fraud and deceit in its sales and advertising representations; breach of contract by unilaterally modifying terms and conditions of sales and financing; violating the California Business and Professions Code by knowingly distributing false and misleading information; violating the Unruh Act with unlawful retail installment contracts; engaging in deceptive practices in its financing programs; and entering into unlawful contracts and charging excessive finance charges.

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