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…show more content… The U.C.C. defines a lease as transfer of goods by a lessor to a lessee for a set amount of time in exchange for payment (“U.C.C.,” 2002). Using this definition, the U.C.C. Article 2A can be applied to the agreement between Letisha and Sudson Washer and Dryer Service. Sudson leased the equipment to Letisha in return for monthly payments. The company is responsible for the upkeep and maintenance of the washer and dryer because they hold the title to the machine. Letisha is required to make payments to Sudson in order to fulfill her part of the lease agreement. Article 2A not only lists the necessities to make a lease agreement legal, but it also lists the rights of both lessee and lessor regarding the lease agreement. Complaints to Government Entities One entity that Letisha may complain to is the Better Business Bureau. The BBB will look into any complaint that does not involve the workplace, discrimination, health services, legal services, or cases in litigation (“What complaints,” 2013). A complaint through the BBB will be sent to the business for resolution. Though the business may choose to stand behind their agreement, a complaint will be lodged against the company. Another option for Letisha is the Bureau of Consumer Protection under the Federal Trade Commission. The purpose of the Bureau of Consumer Protection is to protect consumers from
