Discuss the potential differential in bargaining power between the credit card company and the consumer
Please watch video (see link below) and complete part 1.
A credit card is a contract, and a contract is a legally enforceable agreement where both parties agree to the terms. Please watch the Video: Agreement: Credit Card Victims Fight Backunder the content of Chapter 12 :Agreement.” Over the years consumers have been warned to watch out for the small print. You can find many examples on the Internet where consumers have been “burned” and have fought back against credit card companies.
PART 1:
Write a 250 word post on any of these topics brought up in the video. Do some Internet research on the topics and don’t forget to include links to your material.
Discuss the potential differential in bargaining power between the credit card company and the consumer in a credit card contract.
Do you believe that most credit card contracts today have some room for negotiation of terms? Do believe that the negotiation of terms is a part of American culture? How does this compare to other cultures?
Discuss whether there should be any requirements of reasonableness or fair dealing implied in the credit card agreement.
Should the credit card contract specifically link the rate to some objective measure of risk? If so, would the company then have an obligation to lower the interest rate if the risk level goes down? Do you believe that credit card companies would ever agree to this type of provision?
………………………………………Answer preview……………………………………….
While parties to a contract should exercise reasonableness and fair dealing, the credit card companies carry the risk of fraud or error in payment which is negligible compared to that borne by the consumer. Many times, credit card companies often take advantage of the bargaining power to impose high debit card fees which range from 1% to 2%……………………………….
APA
355 words
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