Automatic Renewal Clauses: The Case between Letisha and Sudson Washer and Dryer
Automatic Renewal Clauses:
The Case between Letisha and
Sudson Washer and Dryer
Abstract
This paper examines a contract between Letisha and Sudson Washer and Dryer that contains an automatic renewal clause. The potential defenses for Letisha if Sudson sues her for breach of contract are presented. The defenses for Sudson that support the automatic renewal clause are also discussed. The ethical issues of using an automatic renewal clause and the actions of the Sudson Washer and Dryer representative when signing the contract are also examined. Section 2A of the Uniform Commercial Code and how it applies to this case is presented. There are also government and private entities that Letisha can complain to about the business practices of Sudson. Finally, the paper concludes with the potential outcome of the case if Sudson sues Letisha for breach of contract.
Automatic Renewal Clauses: The Case between Letisha and Sudson Washer and Dryer
Letisha signed a lease with a Sudson Washer and Dryer Representative that allowed her to lease a washer and dryer from the company for five years. At the end of the lease agreement, Letisha called to cancel, and found out that her lease agreement had been extended for three five year terms. Letisha was unaware that the contract had an automatic renewal clause. The Uniform Commercial Code section 2A defines a lease agreement, and it also explains how lessees and lessors are protected. Using Section 2A and state laws, there may be defenses for Letisha if she decides to breach the contract and Sudson sues her. There may also be government agencies Letisha can bring her grievances to about Sudson’s use of automatic renewal clauses. There are also defenses for Sudson to support the enforcement of the automatic clause, even if the use of an automatic renewal clause may be unethical. This case is an example of the importance of reading a contract before signing it.
Defenses for Letisha
The Case between Letisha and
Sudson Washer and Dryer
Abstract
This paper examines a contract between Letisha and Sudson Washer and Dryer that contains an automatic renewal clause. The potential defenses for Letisha if Sudson sues her for breach of contract are presented. The defenses for Sudson that support the automatic renewal clause are also discussed. The ethical issues of using an automatic renewal clause and the actions of the Sudson Washer and Dryer representative when signing the contract are also examined. Section 2A of the Uniform Commercial Code and how it applies to this case is presented. There are also government and private entities that Letisha can complain to about the business practices of Sudson. Finally, the paper concludes with the potential outcome of the case if Sudson sues Letisha for breach of contract.
Automatic Renewal Clauses: The Case between Letisha and Sudson Washer and Dryer
Letisha signed a lease with a Sudson Washer and Dryer Representative that allowed her to lease a washer and dryer from the company for five years. At the end of the lease agreement, Letisha called to cancel, and found out that her lease agreement had been extended for three five year terms. Letisha was unaware that the contract had an automatic renewal clause. The Uniform Commercial Code section 2A defines a lease agreement, and it also explains how lessees and lessors are protected. Using Section 2A and state laws, there may be defenses for Letisha if she decides to breach the contract and Sudson sues her. There may also be government agencies Letisha can bring her grievances to about Sudson’s use of automatic renewal clauses. There are also defenses for Sudson to support the enforcement of the automatic clause, even if the use of an automatic renewal clause may be unethical. This case is an example of the importance of reading a contract before signing it.
Defenses for Letisha
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