In keeping
with the changes instituted by Supreme Court of California regarding
the fraud evidence rule, customers now have the right to contest the
validity of a business contract if the terms laid out do not match
what was initially discussed between the contracting parties.
Companies who want to set up shop in California must therefore be
more mindful when giving out promises verbally, lest they be charged
with fraud and/or breach of contract. Any form of verbal
communication should ideally be recorded, and a transcript or a
written summary be supplied to the contracting parties.
Under
the new law, businesses must also be more careful when conducting
everyday deals and transactions since anything they say can be used
against them. Business fraud can be invoked against a company in a
number of ways, most commonly through misrepresentation.
Misrepresentation is said to be intentional
if it can be proved that the accused committed a blatant lie, and
negligent
if
committed by accident.
In any case,
the penalty for business fraud can be relatively minor (such as a
simple fine), depending on the circumstances. Luckily, victims of
business fraud have the option to file a class action lawsuit, which
hinges on the principle that the more people who accuse a company of
the same crime, the heavier the punishment will be. With the recent
modification to the fraud evidence rule in California, consumers now
have more tools at their disposal against fraud.
0 comments:
Post a Comment