Unit 4 – Housing and Consumer Law Contract: A legal agreement that binds two or more, including an offer and an acceptance (must involve something of substance) Consideration: Something of value in a contract Legally competent: not mentally impaired Unconscionable: An illegal contract Breach: a break in a contract

Finance and Repossession Garnishment: When a creditor (or tax collector) takes a debtor's wages. Attachment: When a creditor affixes a lien to a piece of property to get a debt paid (prevents transfer of title). Title: Proof of ownership Credit score: Three companies rate it nationally, you are entitled to one free report every year. Credit score is up 850, and a good score 720, and the average is about 640.

Consumerism Consumer Union: Consumer Reports Better Business Bureau: Rates businesses and stores complaints against them Angieslist.com: Internet era wiki copying the BBB for local contractors Complaining to a company: Calls and letters

How to write to a company Include your name, address, phone number and address. Be brief – one or two paragraphs – and don't be sarcastic or angry. Include facts, and your experiences with the company. Include copies of receipts, if possible Type the letter, if possible

Consumer Law Fraud: Lying in print, lying in word. A false statement about an important fact. (Intentional) Express Warranty: A (usually written) statement specifying what the seller will back up. Caveat emptor: Buyer beware. A case where no warranty is given.

Consumer Financing creditors/debtors Secured credit: Credit backed by something of value that the lender can take in case of non- payment. Unsecured credit: Credit without backing, other than the promise of the debtor. Credit cards: APR: Annual percentage rate 30 days no interest on new purchases (not amount of a balance)

2 kinds of credit Collection agency:  Type one: Works directly for the creditor (subcontractors)  Type two: Buys debt from creditor at a discount and tries to collect the full amount Balloon interest: Loan with a low rate over a fixed period of time, followed by a higher rate (usually on home and other long term loans) Variable rate loans/Fixed rate loans

Interest terms Usury: Lending at excessive interest, or illegal rates Credit Card fees  APR/finance charge  Service charge  Penalty charges: Late payments

Late payments Bill consolidation: All (or most) bills put onto one bill, creditors negotiated with for lower interest rates, can hurt credit score Bankruptcy: legal declaration you can't pay your debtors, results in lowered payments to debtors and much lower credit score. Repossession: When a piece of property purchased by financing is taken back by creditors.

Smart Consumerism Consumers Union: Consumer Reports Better Business Bureau: They track complaints against companies Angieslist.com: A wiki that rates local contractors

Dealing with Bad Service In cases of fraud, the case may be taken up with criminal courts by prosecutors In civil cases, plaintiffs can sue for:  Expectation damages: The amount of value you expected to gain if the other party kept his part of the bargain.  Rescission and Restitution: To restore a problem back to where it was before the deal (status quo ante)  Specific Performance: Where courts are asked to carry out specific parts of the bargain.

Suing for bad service Duty to mitigate: The responsibility of a party to make a wrong right again. Small Claims Court: Up to $2,000 (filing fee $30-40) Civil Courts allow subpoena of reluctant witnesses Assignment: Read Mock Trial on pp

Buying a Car Budgeting  How much can put as a down payment?  If financing, how much can you afford for a monthly payment?  Insurance costs  Maintenance costs (esp. for a used car) Consumer protection laws by the state  Lemon law Underage purchasers may need a co-signers.

Housing law Buying a house Lease: Tenant: Someone who rents a property Landlord: Someone who offers a property for rent and maintains the property Guarantee of habitability: A legal right that a tenant will have necessary utilities and environment to live in the property

Renting Lease:  Term of years: Fixed rent rate over a period of at least 6 months  Month-to-month tenancy: Tenant and landlord agree to give 30 days or more notice before changing rents or vacating the lease.  At Will: Tenant and landlord can change or void a lease without notice Lease terms:  First and last month's rent up front  Security deposit: Guarantee to landlord that any damages by tenant will be fixed

Tenants and Landlords Right of Access: The right of a landlord to enter your apartment for legal reasons, usually involving advance permission. Right to quiet enjoyment: