Why You Should Read the Fine Print and Why You Don’t

Chances are you’ve been stung at least once because you didn’t read a contract before signing. Hardly anyone takes the time to read the fine print.

As published in the Wall Street Journal this week, its estimated that, on average, each household in America loses approximately two thousand dollars each year on fees, scams and waivers they werent aware of because they didnt read contracts connected with services or products rendered. That amounts to 250 billion dollars across America. Google “BBB read the fine print,” the results may surprise you.

Here are a few of thousands of suggestions the Better Business Bureaus around the country have made after receiving numerous complaints that could have been avoided if only the consumer had read the fine print.

• The Connecticut BBB: In 2011, received 1,300 complaints regarding scam cruise ship scam offers. With the cruise ship season upon us, they warn that fraudulent companies send post cards, letters and advertising packets offering great deals or free cruises.
• The St. Louis, Missouri BBB: Recommends using caution when purchasing gift cards. There may be an expiry date, additional fees, or if the person receiving the gift card wants to make an online purchase, this may not be possible.
• A Charlotte, North Caroline BBB: Warns that over the last thirty-six months, they have received four hundred and eleven complaints, regarding gym memberships. Most of the complaints were because a salesperson promised one thing, while the contract stated something different.

• Odessa America, a newspaper serving West Texas and Eastern New Mexico, published a cautionary tale regarding internet deals, such as Groupon and Living Social, the article urges readers to read the fine print because there may be details that arent obvious.
• An article in The Lorado Sun titled “Resolve to be a Smart Shopper in 2012 listed ten resolutions. Resolution number three was, always read the fine print.
• The Toronto News published an article regarding ten things you need to know before signing on the dotted line, number four was to read the contract and pay attention to the details.

This is all very well, but there are very good reasons why most of us shudder at the thought of reading the thousand or more contracts we will be asked to sign during our life time. They can be many pages long, full of legalese and printed in small type. Besides, they are mostly boilerplate contracts, and nothing within the contract can be changed.

In August 2009, The Net Institute published the results of an extensive study The purpose of the study was to quantify the informed minority.

It is rationalized that in competitive markets a minority will read the terms of a boilerplate, and that is enough to keep disciplined sellers from offering unfavorable terms. The hypothesis is that if the seller loses informed minority purchasers because of unsuitable terms, the loss would outweigh profits gained by taking advantage of the majority who are not reading the contract.

The Net Institute concluded that the informed minority in their study was so insignificant that the argument against regulation because of the informed minority holds no water. Also, courts tend to side in favor of the seller, striking down buyer cases unless its found that the terms are “substantially and procedurally unconscionable.”

The Wall Street Journal story reported that a recent iphone contract was thirty-two pages long with margins 1/8 of an inch and character height of 4.5 points, which is a “smidgen taller than the thickness of a single dime.” Making the contract even more it difficult to read was the liberal use of capitalization. The article also mentioned that the median length of bank disclosure documents for a checking account is one hundred and eleven pages.

Regulators are insisting on greater transparency. Businesses want to protect themselves from being sued. This has resulted in wordier and wordier contracts, full of legalese, and printed with typeface almost impossible to read. Since its the consumer who pays the price, its the consumer who must lobby for fair contracts.

Sources:

Wall Street Journal – It’s not your eyes – the fine print is getting really, really small

St. Louis BBB Advises Shoppers to Watch Out for Fee Tampering When Buying Gitf Cards

South Piedmont Charlotte NC Joining a Gym in the New Year? Resolve to Get Fit without Getting Taken

Odessa America – BBB – Internet deals sometimes lead to frustration

Laredo Sun – Resolve to be a smarter shopper in 2012

Toronto News – Before You Sign on the Dotted Line – Ten Things You Need to Know

Fair Contracts – Consumers Take Action

Gurome’s Quant Blog Series – Probability Q83

The question this week in our GMAT Quant Blog Series on Probability is given below. We wish all the best to all those who are taking their GMAT Test in the coming weeks!

 

Jack had a bet with Ben that he can construct a right-angled triangle with all three sides as integers and none of the perpendicular sides having length, which is a multiple of 3. What is the probability that Jack will win the bet?

 

(A) 0

(B) 1/3

(C) 2/3

(D) 3/4

(E)  1

 

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Criminology Term Papers: Writing about the Important Issues

• Forensic Victimology: Examining Violent Crime Victims in Investigative and Legal Contexts (by Turvey, B., Petherick, W.)
• Cultural Criminology and the Carnival of Crime (by Presdee, M.)
• Environmental Criminology and Crime Analysis (Crime Science Series) (by Wortley, R.)
• Crime and Criminology (by White, R., Haines, F.)
• Crime and the Lifecourse (Criminology and Justice Studies) (by Benson, M.)
• Globality, Crime and Criminology (by Cain, M.)
• Gender and Crime: A Reader (Readings in Criminology and Criminal Justice) (by Evans, K, Jamieson, J.)
• Global Criminology: Crime and Victimization in a Globalized Era (by Ronel, N.)
• Law and Crime (Key Approaches to Criminology) (by Johnstone, G.)
• Criminal Profiling, Third Edition: An Introduction to Behavioral Evidence Analysis (by Turvey, B.)

Every of the mentioned books contains an endless range of ideas for your paper. A good way to form the term paper on criminology ideas is to browse the names of book chapters and to choose the ones that are interesting for you personally.
 
However, in case you only have an access to electronic resources, it is also a good opportunity for writing sustainable criminology term papers. The good strategy that can be adopted in this case is reading the site news, articles and posts, which can inspire for brilliant ideas for one’s paper. In order to do this, one may consider visiting the following sites for ideas:
 

ESEA Reauthorization: Everyone’s cards are on the table. Now let’s make a deal.

Home Jan 17, 2012 Issues: Education, ESEA

It has been ten years since the passage of No Child Left Behind, the most recent reauthorization of the Elementary and Secondary Education Act. This law ensures that all children have an equal access to a quality education no matter their background. However, there is broad agreement that the law is now outdated and is restraining schools from making the kinds of improvements needed to benefit students, communities and the economy. 

Rewriting the outdated No Child Left Behind law will only happen through bipartisan consensus that serves the interests of all the nation’s children. Unfortunately, Education Committee Republicans recently released two highly partisan draft pieces of legislation in place of a whole-scale rewrite of NCLB that do not live up to our nation’s commitment to all of our children. This move likely means that the rewrite of the law won’t happen this year and millions of schoolchildren will have to remain under the current broken system.

In response, Rep. George Miller (D-CA), the senior Democrat on the Committee said that “the draft language abandons students, parents, and taxpayers alike by failing to hold school systems accountable for improving student achievement.  It walks away from the broad consensus reached throughout the country that our schools must prepare students to graduate college-ready and career-ready.  It undermines programs for our most vulnerable students, shirking the civil rights responsibilities of the federal government.  It eliminates critical programs and funding that promote a balanced education such as those that create a well-rounded curriculum or wrap-around services for students.  Additionally, the Kline draft removes critical assurances to taxpayers that states and districts maintain education funding.”

Secretary of Education Arne Duncan is also unhappy with both the substance and the process. “I appreciate the effort, but this bill retreats from reform, accountability and bipartisanship,” he said. “We need to set politics aside and put kids first. Until Congress can pass a real bi-partisan reform bill that the president can sign, we’ll be moving forward with our ESEA flexibility package because America can’t wait.”

And Sen.Tom Harkin (D-IA), the chairman of the Senate Education Committee and the author of that chamber’s bill, also lamented that the bill only has Republican support. “I am disappointed that he [Rep. Kline] has abandoned the longstanding tradition of bipartisanship when it comes to the education of our kids,” he said.

Likewise, teacher, civil rights, disability, business, education reform, and other advocacy organizations are coming out against these proposals that will undercut gains made by our nation’s children over the last decade:

The Center for American Progress criticizes the bills for doing “more harm than good by returning almost all control of education to the local level. They would jeopardize important civil rights protections for disadvantaged students, reduce accountability for the use of taxpayer dollars, and promote partisan ideas that make it less likely NCLB actually gets reauthorized soon.”

Bob Wise, president of the Alliance for Excellent Education and former governor of West Virginia observed that “bipartisan gains for the nation’s high schools made under the Bush and Obama administrations would be threatened or lost under the House committee’s proposal.” For example, under these draft proposals, ”the federal requirement for high school graduation rate accountability would be eliminated,” and these drafts do not “call for necessary college- and career-ready standards and could limit the ability of the U.S. Department of Education to support the state-led effort to implement common assessments aligned with these standards.”

The New America Foundation noticed a few “surprising omissions” from the Republican draft bills, which “generally lessen the federal role in state and local K-12 education, particularly as it pertains to accountability and standards, putting more authority in states’ hands.” These drafts show what the GOP has “in mind for a future federal role in K-12 education: far fewer fiscal and accountability requirements for state and local school districts masquerading as flexibility and local control.” Furthermore, New America sees reauthorization as unlikely unless it’s bipartisan, and unless more lawmakers “start thinking about education as a coherent system from pre-kindergarten through 12th grade if they want to ensure more children are ready for kindergarten, reading by the end of third grade and on the path to graduate from high school ready for college and career.”

According to the National Center for Learning Disabilities, these bills “represent a full retreat from accountability for students with disabilities and other disadvantaged children…[because they] fail to focus on closing the destructive achievement gaps that impacts” these students.

Education Sector warns that the proposals “could mean that far fewer schools – especially low-performing high schools that are less likely to be designated as Title I schools – are part of state school improvement efforts.” Alyson Klein, writing for Education Week, writes that the draft bills would “significantly scale back the federal role in K-12 schools and go further than any other proposal yet to dismantle the accountability tenets at the heart of” NCLB.

“I think this is a stage prop rather than a real legislative effort,” said Charles Barone, the director of federal legislation for Democrats for Education Reform. “They’re just doing this to say they did something.” Under the bill, accountability would be “pretty much anything goes,” he said. “It’s just a bunch of vague language.” 

Stanford University Education Profession Linda Darling-Hammond, who directs the Stanford University Center for Opportunity Policy in Education and was founding director of the National Commission on Teaching and America’s Future

 

Blockbuster Vs. Family Video: Which Video Rental Store is Best?

Blockbuster Vs. Family Video: Which Video Rental Store is Best? Family Video now competes against Blockbuster in many markets. The best rental store depends on your likes and needs.

With the closing of Hollywood Video, Movie Gallery, and many smaller independent stores, not many video rental shops still exist. In many markets, the only competition for Blockbuster is Family Video. The two stores share some similarities, but are quite different. The right rental store for your family might depend on exactly what each store offers.

Both Blockbuster and Family Video have similar prices in terms of movies. In Dayton, Blockbuster charges $2.99 for new releases, including releases yet to make it to the vault. The vault is the area reserved for older films. Movies in the vault area rent for $.99. Blockbuster offers some specials. For example, during Halloween, my local store rented horror movies for $.49-.99 on different days of the week.

Family Video rents new releases for $2.49. The company drops the prices, as the movie sits in the store. The Nearly New section is for movies that are still relatively new and the films rent for $1. The older releases rent $.50 or two movies for one dollar. The store also has some free rentals for children and free educational rentals.

The downside to Family Video is that the store has a special section for Prequels and Sequels. The movies on this shelf rent for higher than the other movies, but less than new releases. The odd thing in my local store is that the section has some surprising choices. Paranormal Activity sits in this section, while Paranormal Activity is “nearly new”. The Step Up movies are reserved for the older section.

In terms of renting TV shows, Family Video comes out ahead of Blockbuster. Blockbuster rents TV shows by the disc, charging $.99 for each disc. If you want to catch up on your show one disc at a time, this might work for you. Family Video also charges $1 per disc, but if the show runs for three discs or more, the store only charges $3 for the entire rental. I caught up on Fringe, Mad Men, Supernatural, and other shows, while discovering new TV shows just from that section.

When it comes to rental length, Family Video also wins. Blockbuster claims in store-wide advertising that customers wanted cheaper rental prices, so it dropped the prices. It also reduced the rental length. I was surprised when I rented four older movies a few months ago and discovered that all four were due by closing time the next day.

Family Video limits new releases to one day rentals, but also gives you the option of renting for five days for an additional fee. The older movies rent for a five-day period. Imagine renting two movies for $1 plus tax and getting to keep those movies for almost a week.

• Free and Low Cost Movie DVD Online Rentals
• Bankruptcy in the Future for Blockbuster
• How to Watch Movies Online

Blockbuster rents video games by the night, unless you have a Pass. I frequently rented games in the past because the store charged $15 for two games for five nights each. The new system charges $1.99 for both old and new games. You only get the game for one night and must pay $1.99 if you do not return the game by closing.

Family Video rents video games for around $2 per game for a one-night rental, but you also have the option of a five-night rental. A five-night video game rental costs a little under $6. Many of the older games have a rent one-get one special, where you pay one price for two games.

If you are still renting from Blockbuster, take a look at some of the incentives offered for new members by Family Video. The store offers half-price rentals for the first month after signing up. The store also gives you coupons for use, after your first month. Family Video does not automatically charge your card for late fees, but adds it to your account.

While it might seem that I fully support Family Video, I am not happy with one policy. If you are a new member, you cannot rent newer video games unless you pay a deposit. According to my local store, the policy ensures that people do not take video games by charging a $20 fee upfront. Blockbuster lets you rent games and if you do not bring one back, the company charges your credit card.

Family Video requires that you spend $150 in the store before it lifts the restriction. As a member for the last three weeks, I am nowhere close to that threshold. I have yet to spend more than $10 in the store, even when I rented a video game, two TV shows, and several movies.

The bottom line is that Family Video is a better buy. If you have one in your area, stop by and sign up for an account. You must have a photo ID and two phone numbers attached to the account, but the store does not require a credit card.

2011; the year that was …

2011 was an eventful year for the MBA world. There were new trends and the revival of old ones, with major B-schools making changes along the way. Business schools had to face the brunt of recession that brought down MBA applications to most full-time programs. Students and schools had to deal with higher tuition costs and reductions in state aid (especially in the U.S.). Full-time MBA programs of two-year duration were worst hit with two-thirds of them reporting a fall in the number of applications for 2011, according to a survey published by Graduate Management Admission Council (GMAC). The trend was observed at many top MBA programs in the U.S. including those in Harvard and Chicago Booth.

2011 also saw MBA graduates taking up unconventional career choices. A large proportion of the MBA students opted for start-ups, jobs in the non-profit sector, government agencies and social enterprise. The economy played a major role in establishing this new trend. The international B-school arena experienced change as well. Several schools noticed an increase in MBA applications from foreign applicants, especially from China. With east Asians preferring the U.S. for their business education, the Europeans chose B-schools closer to their homeland.

Along with these trends, 2011 saw some major events in the MBA arena which showed the world that business education is as global as other fields and social media savvy too.

January 2011

• INSEAD becomes the latest business school to put material on iTunes U, Apple’s dedicated education podcast channel. The school joins leading institutions including Harvard and Wharton in this endeavour
• MIT Sloan School of management announces that it will tie up with Turkey’s Sabanci University for the exchange of students and faculty

February 2011

• Following Wharton’s footsteps, University of California, Berkeley says it will give future MBAs two free days on one of the school’s executive education programs

March 2011

• Vanderbilt University announces its launch of an Americas MBA, jointly offered with Brazil’s FIA Business School, ITAM in Mexico and Simon Fraser University in California

April 2011

• Belgium’s Vlerick Leuven Gent Management School launches an English language executive MBA program in Moscow

May 2011

• GMAC launches an iPod app which includes sample questions and explanations of answers

June 2011

• A group of students from George Washington University Business School say they will fly to South Africa for the football world cup – not to watch matches – but to study the tournament’s social and economic effects first hand

• Glasgow Caledonian University announce the launch of a one-year MBA program in luxury brand marketing – the first of its kind in the UK

July 2011

• The George Washington University B-school announces a new executive MBA program called the Star MBA, designed for individuals with strong personal brands such as athletes and musicians

September 2011

• Wharton’s MBA Class of 2011 shows impressive gains in job placement. As of the end of the month, 96 percent of students from the most recent graduating class had 86 percent offers as opposed to only 86 percent at the same time in 2010

October 2011

• Cuba opens its first MBA program which is an initiative of the Roman Catholic Church

November 2011

·         When the biennial executive MBA ranking was released by Financial Times this month, Northwestern’s Kellogg School of Management wasn’t at the top for the first time since the ranking’s inception in 1992

      About the author: Sue is a freelance writer based in India and writes regularly for Gurome.