I took a business law class for summer school and it turned out to be extremely rewarding because aside from learning some basics to the laws that governs businesses, I learned some practical things that makes me a smarter consumer and citizen.
1. Anyone can threaten to sue and even try to sue, but that doesn’t mean the person’s case will be heard in court.
You can sue for anything, but that doesn’t mean it has any real merit and will even be heard. Many cases end at the complaint (the very first step to having a civil case heard in court) because they are dismissed for having no merit. Plus, if that person really wants to go through with their threat, it costs $435 just to file a complaint.
2. The process of going through the court system is expensive and time-consuming.
It can take months and years for a case to be heard and more time to reach some kind of conclusion. This process is extremely expensive, with lawyers who charge between $255 to $520 per hour and sometimes much more. This is why it’s easier for corporations to win cases with ordinary citizens. They’ve got the time (lawyers on the payroll are hired specifically to take care of these cases) and the money to be in for the long haul, which can force ordinary citizens to take an offer of money that is way less than what they deserve.
3. Not all contracts are enforceable.
For example, if someone makes a contract with someone else to carry out an illegal transaction and one party doesn’t go through with the agreement, the other party cannot sue because the transaction was illegal to begin with. Some corporations even know that certain parts of a contract aren’t enforceable, but put it in there so that consumers think it is, so we do as they say.
4. Don't be afraid to ask the uncomfortable questions.
Don’t keep quiet if you have a burning question. Wondering if a life insurance agent is suggesting plans in your best interest? Ask them whether they’re making commission off your business. Chances are, the answer will empower you to make the best decision for yourself.
5. Contracts are negotiable.
You know those printed contracts you get from your phone company? At the bottom, you can sign to accept the agreement and contract. Did you know that you can take your pen and cross out sections of the contract you don’t like? Most salespeople will be extremely confused by this, because it’s probably never happened to them before. They might say, “OMG you can’t do that,” but you totally can. 99 percent of the time, they’ll just accept it. And if they don’t want you as a customer, there are so many more providers out there. You’ve got so much more power as a consumer than you thought!
6. Know what you’re getting yourself into.
Whether this means reading the contracts your phone company puts in front of you, or checking public records to make sure your doctor hasn’t had cases of malpractice, it’s great to be in the loop.
Contractors can say they are licensed and might not be. Even if a license number is on the contract you’re signing, best to check and make sure it wasn’t falsified or isn’t expired. Checking the public records can save you from the possibility of a bad job and money down a drain that wasn’t even repaired properly.
7. We’ve signed binding arbitration clauses.
Let’s say your TV company does you wrong by being negligent. You want to sue them for damages. Would you ever agree to giving up the right to trial (go in front of a judge and a jury) and allowing the wrongdoing TV company to choose its own mediator (who is great friends with the CEO, by the way) to decide which party wins their case? Additionally, would you give up your right to appeal so that mediator has the final say? Chances are, you’ve signed your rights away if you have a cell phone, a credit card, a car. Next time you read your contract and seeing the binding arbitration clause, use your pen and cross that baby out. Remember, contracts are negotiable!
8. You don’t have to be a lawyer to make an enforceable contract.
Crazy, right? All you need is some kind of written agreement (and it doesn’t have to be in legal jargon) with a signature or two.
Everyone should take an introductory law course, but if one doesn't, these eight practical pieces of information will go a long ways in making one a more informed citizen of the law and a more savvy consumer.
