2. © 2009 South-Western, Cengage Learning

3.  HISTORY OF CONSUMER LAW C aveat emptor is no more M.G.L. c. 93A Exempt from 93A Enforcement – 30 day demand letter

4. © 2009 South-Western, Cengage Learning  PURPOSE OF 93A Three Objectives 1.Unfair and deceptive practices declared illegal 2.Incorporates interpretations of FTC Act 3.Provides for MA Attorney General to make regulations

5. © 2009 South-Western, Cengage Learning  THE ROLE OF MA ATTORNEY GENERAL  ILLEGAL PRACTICES AND MISREPRESENTATIONS OF 93A Previously legal -- now unlawful Licensee responsibility for statements and omissions

6. © 2009 South-Western, Cengage Learning  AFFIRMATIVE DISCLOSURE material facts a licensee knows/should have known facts which might influence buyer decision to purchase whether or not a buyer inquires supersedes duty of confidentiality disclosure of home inspection causing aborted sale generally limited to licensees

7. © 2009 South-Western, Cengage Learning  VIOLATION OF STATE SANITARY CODE IS VIOLATION OF 93A  LEASE AGREEMENT Simple understandable language Names and contact information owners and agents

8. © 2009 South-Western, Cengage Learning  different for business to business  30-day demand letter  most claims resolved or settled before court  double or treble damages  attorney fees and costs  no prerequisite of loss of money  actual purchase of goods or services not required  small claims court - $2,000 or less may be more equitable

9. © 2009 South-Western, Cengage Learning bait and switch not a bona fide effort to rent or sell misleading statements or photos deficient guarantees or failure to identify guarantor misrepresentations as to construction, safety or condition misleading financing terms or availability advertising a quality, value or usability that does not exist misrepresenting ease of repair or maintenance

10. © 2009 South-Western, Cengage Learning EXAMPLES OF NON-MATERIAL DEFECTS crimes or suicide occurring on the premises neighborhood crime barking dogs, roosters or wake-up calls neighbor loud parties possible future development

11. © 2009 South-Western, Cengage Learning PSYCHOLOGICAL IMPACTS ☹ site of felony, homicide or suicide ☹ site of ghosts or other supernatural phenomenon ☹ occupant suspected or infected with HIV or AIDS

12. © 2009 South-Western, Cengage Learning DOES THE LICENSEE TELL? Licensee not qualified to identify What should licensee recommend? Strict penalties for misuse of information NAR recommendation

13. © 2009 South-Western, Cengage Learning SEX-OFFENDER REGISTRY Sex Offender Registry Board Police departments are local resource Level 1 (low risk) Level 2 (moderate risk) Level 3 (high risk)

14. 30-day demand letter affirmative disclosure bait and switch caveat emptor Megan’s Law M.G.L. c. 93A psychological impacts puffing unfair and deceptive practices