Consumer Protection Act

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Reference no: EM133854030

Question

After months of development, and many obstacles and challenges, the beta version of the software is finally ready for a soft launch. Thanks to Joseph's mass marketing campaigns and social media presence. Legal Al has developed a solid following with many people looking to be the first to try it out. In fact, after Joseph proclaimed to the world that for a very small service fee, you can produce legal contracts of the highest quality and with zero mistakes guaranteed, many consumers have already pre-ordered their one-month free trial subscription. However, launch does not go to plan as, shortly following user trials, many people have reported a whole host of bugs and issues. One consumer in particular has sent a letter of demand to you and Joseph personally claiming that the software produced a legal agreement that was full of errors and typos and did not include a very important clause that resulted in what this person is claiming to be $25,000 worth of damages. In substance, despite the user claiming it had asked the software to include a termination right in their favor such that they can cancel anytime and without penalty, the agreement that was produced mistakenly included a clause that stated that, in the event of a voluntary termination, such party shall be liable for the full amount of the contract owed, which such person alleges to be $25,000. Joseph immediately pins the blame on Lauren sand Sara (and goes as far as saying that they are responsible for the damages), and also points you to the disclaimer that had been included on your website which stated that Legal Al would not be responsible for any legal issues associated with the agreement.

Based on the foregoing:

1. Do you believe the letter of demand was properly sent to you and Joseph in your personal names? Why or why not?

2. Do you believe that Lauren and Sara are personally responsible for any potential damages given that the error clearly was a technical one?

3. Do you believe that the person that is claiming the damages from Legal Al has a credible claim? Why or why not?

4. Briefly summarize what else the plaintiff would have to do, and the general steps they would need to take, if they wanted to pursue their claim to the extent no settlement was reached from the letter of demand. Please also describe what steps the company can take to try and mitigate the issue.

5. Would the plaintiff be entitled to make a claim under the Consumer Protection Act? Why or why not?

Reference no: EM133854030

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