ASSIGNMENT
1. Jane Jones, a married woman, applies for a credit card from Exxon but is refused credit. Jane is bewildered as to why she was turned down. What are her legal rights in this situation?
2. On a beautiful Saturday in October, Francie decides to take the twenty-mile ride from her home in New Jersey into New York City to do some shopping. Francie finds that Brown’s Retail Sales, Inc., has a terrific sale on tele- visions and decides to surprise her husband with a new high-definition television. She purchases the set from Brown’s on her VISA card for $1,450. When the set is delivered, Francie discovers that it does not work. Brown’s refuses to repair or replace it or to credit Francie’s account. Francie therefore refuses to pay VISA for the television. VISA brings a suit against Francie. Will VISA prevail? Why or why not?
3. Frank finds Thomas’s wallet, which contains numerous credit cards and Thomas’s identification. By using Thomas’s identification and VISA card, Frank goes on a shopping spree and runs up $5,000 in charges. Thomas does not discover that he has lost his wallet until the following day, when he promptly notifies his VISA bank. How much can VISA collect from Thomas?
4. Robert applies to Northern National Bank for a loan.Prior to granting the loan, Northern requests that Callis Credit Agency provide it with a credit report on Robert. Callis reports that three years earlier, Robert had embezzled money from his employer. Based on this report, Northern rejects Robert’s loan application.
a. Robert demands to know why, but Northern refuses to divulge the information, arguing that it is privileged. Is Robert entitled to the information? Explain.
b. Assume that Robert obtains the information and alleges that it is inaccurate. What recourse does Robert have?
5. Colgate-Palmolive Co. produced a television advertisement that dramatically demonstrated the effectiveness of its Rapid Shave shaving cream. The ad purported to show the shaving cream being used to shave sandpaper. But because actual sandpaper appeared on television to be regular colored paper, Colgate substituted a sheet of Plexiglas with sand sprinkled on it. The FTC brought an action against Colgate, claiming that Colgate’s ad was deceptive. Colgate defended on the ground that the consumer was merely being shown a representation of the actual test. Explain whether Colgate has engaged in an unfair or deceptive trade practice.
