3,269 karma · joined November 2, 2016
[1] https://grants.nih.gov/policy-and-compliance/policy-topics/h...
Yes, lots of businesses have thin margins. But the law (such as contract law and the laws against consumer fraud, which are implicated here) sets the things that a business can’t economize on in order to meet those margins. It’s the same as food safety: restaurants also run really thin margins, but they’re not allowed to store the meat on the counter because refrigeration is too expensive. If they do that, they get shut down by the health inspector.
Businesses “should” comply with consumer fraud laws for the same reason they “should” comply with health codes.
Good heavens this makes me feel ancient. Do today's BBC readers really not know that there were two main sizes of floppy disk?
Dirty tricks like writing a contract that says something like "you can cancel at the end of a term, but you have to have a meeting with us," and the contract doesn't say anything about availability of meetings... then the company only offers meeting times after an automatic renewal in order to cheat people into giving them more money... well, that smells like a really good excuse for a lawyer to argue that the duty of good faith has been breached. And even if the company is honest that they were just unable to schedule a meeting beforehand, a decent lawyer might be able to come up with enough of a theory for recovery to negotiate something fair.
[1] https://www.americanbar.org/groups/business_law/resources/bu...
(Does `let` work? I remember that being a barrier for a while.)
Presumably, for example, Starbucks is willing to pay higher interchange on the Chase sapphire series than on the Chase freedom series because they believe that the people carrying Chase sapphire cards spend more money. Starbucks would not be willing to pay that for less profitable customers.