Law in the news; Consumer protection

The National Education already own network presents a law in the news with Professor Joseph R. Julan associate dean of the University of Michigan Law School unsolicited merchandise solicitation printed material having the appearance of an invoice unsolicited credit cards. All these have prompted the making of new law. We're putting it another way there's a fair amount of new federal and state legislation intended to protect the consumer. I've asked Professor William J Pierce president of the Commission on uniform state laws to bring us up to date. Bill we do so an old sailing practice was one of selling unsolicited merchandise to the consumer and then requesting the consumer to pay for the merchandise. Quite often this practice of sending unsolicited Merson merchandise was followed by nasty letters demanding payment and a great number of consumers become highly confused. The common law situation of course of respect to unsolicited merchandise either delivered

through the mail to you or left on your doorstep was that all you had to do if you took it in was merely take reasonable care for it for a reasonable period of time. Now the problem that the consumer faces of course is that the seller is Bill's nasty letters and whatever and requests the person to pay for that list of merchandise. The common law is rather on satisfactory and the result is that three states have recently adopted legislation that limit the practice in New York for example offered to sell goods where the goods and they offer includes the sending of the goods to the recipient is made on a lawful the recipient can keep the goods without payment. And if the seller tries to sue him for the price or for the return of the goods why the. Recipient the consumer has a complete defense. If he can show the goods were delivered

voluntarily and he did not order them in in Illinois which passed the statute. It doesn't make an unlawful to send a list of merchandise However the recipient may refuse to accept the delivery and he is not bound to return the goods. Furthermore if the goods are treated as a gift in that case and he can make any use that he wants to them. A recent Washington statute does much the same thing although it's a combination of the New York and Illinois statute in the sense that if you can show it was unsolicited the goods why it's a complete defense for any action for the very price of the goods or the for the return of the goods and that the recipient of the goods may treat them as a gift. Now with respect to the other consumer practice that is fraudulent practice we see quite a bit of it is really an offer to sell goods that looks as if it were an invoice or a bill and it looks the

same way so the person thinks that he has to pay a bill just like the bills come in at the end of the month from all other merchandisers. However it's really only a solicitation. But many consumers are confused. Now the federal Congress in the last Congress and adopted legislation making that kind of a voice. I'm mailable So it's under control of the Federal postal authorities and unless it clearly states on it that it is merely an offer and no obligation to make payments is about why then it becomes not mailable. However you may want to supplement this as California has done recently making it an unlawful to solicit the payment of money through the use of a statement or an invoice for goods not yet delivered or services not yet performed. The statement or invoice must clearly warn the recipient of the solicitation and that there is no obligation to pay. In the event of a violation the consumer can

obtain treble damages. The other is the unsolicited credit card which there is no current legislation but a great deal of talk about limitations upon unsolicited credit cards. There are the abuses not so evident because the person is not bound unless he makes actual use of the credit card. There's a great deal of concern and we can expect probably limiting legislation within the next legislative sessions. That was Professor William J Pierce of the University of Michigan Law School. Professor Joseph Farr Julan associate dean of the University of Michigan Law School as presented law in the news recorded by the University of Michigan Broadcasting Service. This is the national educational radio network.