nazarova_nb_korobova_ev_practice_in_legal_english

FACTS

In this case, James Phillips purchased a radio/cassette player from The Radio Shop and later attempted to exchange it because it did not work. The date of the sale was November 14; the return was made 10 days later. The sales slip has the following language printed at the bottom: “This product is fully guaranteed for 5 days from the date of the purchase. If defective, return it in the original box for credit toward another purchase.”

The store refused to make the exchange, and James brought this action in small claims court.

EVIDENCE

James has (1) the sales slip for $79.95 plus tax paid to The Radio Shop and (2) the broken radio/cassette player. He claims to have thrown away the box.

WITNESSES

For the plaintiff:

1.James Phillips

2.Ruby Phillips, James’s sister.

For the defendant:

1.A1 Jackson, the salesperson

2.Hattie Babcock, the store manager

COURT

The judge should provide an opportunity for James to make his case and should give the representatives of the store a chance to tell the court why the money should not be returned. Both sides should call their witnesses. At the end, the judge should decide the case and provide the reasons for the decision.

WITNESS STATEMENT: James Phillips

“I went into The Radio Shop to buy a battery–operated, portable radio/cassette player. I looked at a few different models, but the salesperson talked me into buying the Super Electro X–15. I paid the $79.95 price, and he gave me the radio in a cardboard box. When I got home, I found that it didn’t work. I went back to the store to get my money back, but the salesperson wouldn’t return it. He said I should have brought it back right away. I explained to him that my mother had been sick and

I’d been busy. Here are the broken radio/cassette player and the receipt as proof. I want my money back!”

WITNESS STATEMENTS: Ruby Phillips

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“All I know is that when James got home the other day, he was excited and wanted to show me something. He called me into the kitchen to show me his new radio/cassette player. I said, ‘Let’s hear how it works.” He turned it on and nothing came out but static. He moved the dials around but couldn’t get it to play. Was he ever mad! I told him that he ought to take it back to the store and demand his money back.”

WITNESS STATEMENT: Al Jackson

“I sold the kid the radio, but as far as I know it worked OK. All the table models worked well enough, so why shouldn’t the one boxed and straight from the factory? I’ll bet what really happened is that he dropped it on his way home. Or maybe he broke it during the 10 days he had it. That’s not my fault, is it?”

WITNESS STATEMENT: Hattie Babcock

“As Jackson said, all the other X–15s have worked fine. We’ve never had a single complaint about them. We have a store policy not to make refunds unless the merchandise is returned within 5 days in the box we sold it in. Also, the guarantee on the product says that it must he returned in the original box. That’s the reason Jackson didn’t give the kid his money back. Otherwise, we’d have been more than happy to give him credit toward a new purchase. After all, pleasing our customers is very important to us. Personally, I agree with Jackson. The kid probably didn’t bring back the box because it was all messed up after he dropped it.”

What do you think the decision of the judge was?

Match the words on the left with the correct definition on the right:

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UNIT 20.

Credit

Read and translate the texts.

Using credit means buying goods or services now in exchange for a promise to pay in the future. It also means borrowing money now in exchange for a promise to repay it in the future. People who lend money or provide credit are called creditors. People who borrow money or buy on credit are called debtors. Debtors usually pay creditors additional money over the amount borrowed for the privilege of using the credit. This additional money owed to the creditor is called the finance charge. It is based on the interest charged plus other fees.

General Types of Credit

The two general types of credit are unsecured and secured. Unsecured credit is credit extended in exchange for a promise to repay in the future. The buyer is not required to pledge property in order to obtain the credit. Most credit cards and store charge accounts are examples of unsecured credit.

Secured credit is credit for which the consumer must put up some property of value, called collateral, as protection in the event the debt is not repaid. A borrower who does not make the required payments is said to default on the loan. If a borrower defaults, the lender can take the collateral.

For example, a person who buys an automobile may be required by the lender (often a bank) to post the car as collateral until the debt is paid off. If the buyer fails to pay off the loan, the lender can repossess and sell the car, using the proceeds of this sale to pay off the debt.

The Cost of Credit

The cost of credit includes interest and other finance charges. Because there are different methods for calculating interest rates, always ask lenders for the annual percentage rate (APR). This number is calculated the same way by all lenders, so you can use it to compare rates.

Interest Rates. Each state sets limits on the amount of interest that can be charged for various types of credit. Charging any amount above the legal limit is called usury. Lenders who charge interest rates above the legal maximum may be liable for both civil and criminal penalties.

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Interest rate ceilings vary from state to state. Generally, however, loans from banks or finance companies carry interest rates of 10 to 30% per year. Credit card companies and department stores often charge 1.5% per month (18% per year), but these rates can vary widely depending on the lender and the economic conditions at the time. Installment contracts for consumer goods such as new cars or furniture also vary widely.

Some companies now offer variable interest rates. For example, such a rate may be described as “2% over the prime rate” or a “10% variable annual percentage rate”. With a variable rate, the amount of interest you are charged changes from time to time and is computed based on financial market indicators. That means your rate can go up or down with changing economic conditions. Carefully review the information provided by the lender to determine how often the rate can change and how much it can change at each adjustment as well as over the entire term of the loan. When the rate changes, your payments will change. While your payments may start out low, they could increase over time if the rate goes up.

Other Charges. Besides the interest paid on a credit sale, there are sometimes other charges that may be added onto the basic price. These include:

Credit property insurance – insures the purchased item against theft or damage.

Credit life/disability insurance – guarantees payment of the balance due if the buyer should die or become disabled during the term of the contract.

Service charge – covers the seller’s cost of bookkeeping, billing, and so on.

Penalty charge – covers the seller’s inconvenience in case of late payments. May include court costs, repossession expenses, and attorney’s fees.

Find the equivalents of the following words and expressions in the text.

Брать взаймы; давать в долг; должник; стоимость всех элементов кредита; проценты на капитал; необеспеченный кредит; закладывать собственность; получить кредит; кредит под залог имущества; гарантия, поручительство; отказ выплачивать долги; изымать за неплатеж; фактическая стоимость кредита, выраженная в форме процентной ставки; ростовщичество; сильно различаться; плавающая процентная ставка; базисная ставка; штраф.

Answer the questions:

1.What is credit?

2.Who are creditors and debtors?

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3.Do debtors usually pay creditors additional money over the amount borrowed for the privilege of using the credit? What is this additional money owed to the creditor is called? What is it based on?

4.What are the two general types of credit? What is the difference between them?

5.What is a collateral?

6.What can the lender do if a borrower defaults?

7.What is usury? What happens to lenders who charge interest rates above the legal maximum?

8.Why can interest rates vary widely?

9.What do you know about variable interest rates?

10.What other charges besides the interest paid on a credit sale, may be added onto the basic price?

11.Have you ever obtained a credit?

Match the words on the left with the correct definition on the right:

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the term of the contract.

Penalty charge covers the seller’s cost of bookkeeping, billing, and so on

Problem–solving:

a.Make a list of products or services that you, friends, or family members have bought on credit.

b.What are the advantages and disadvantages of using credit to

pay for college or vocational school tuition? For a car to get you to work? For a vacation? For clothing to be worn at a formal party?

f.Write some rules that will help you decide when to use credit.

g.Joy tells Linda, “This washing machine is a good buy–only $500. Now, if you don’t have the cash, I can arrange easy credit for you. Only $50 down and – $50 a month for 12 months. Just sign here.”

Linda signs and pays $50. How much interest will she pay if the g contract calls for 12 monthly payments of $50 each?

UNIT 21.

Credit Cards and Charge Accounts

Read and translate the text.

Today, many stores and companies (including banks) issue credit cards and allow their customers to maintain charge accounts. Consumers can use credit cards to buy gasoline, take a vacation, go out to dinner, and buy furniture, clothing, and many other things. Some of these cards can also be used to obtain cash advances from banks and bank machines.

Credit cards are engraved with the holder’s name and identification number. They entitle the holder to buy goods or services on credit. Some companies provide these cards free; some charge a yearly fee, typically between $15 and $75. Consumers are usually given a credit limit and can make purchases up to that limit.

Companies issuing credit cards send out monthly statements indicating how much you owe. Most credit card and charge accounts allow you to pay bills over time, making a minimum monthly payment. You then pay interest on the unpaid amount of the bill. Often, if you pay the entire amount on or before the due date indicated on the bill, there is no extra charge. However, some

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companies impose interest charges from the date of the transaction. A few require full payment of money owed each month.

Companies use slightly different methods to compute interest. However, you can estimate the monthly interest charge by multiplying the balance owed by the monthly rate. For example, if the interest rate is 1,5%, you will multiply by .015. Suppose you owe a balance of $500.00. The monthly interest charge will be about $7.50 ($500.00 x .015), and the total amount owed for the month will be approximately $507.50 ($500.00 + $7,50 interest).

To more easily compare the rates charged by different companies, you can ask what annual percentage rate (APR) is charged. This rate is calculated the same way by all lenders. The APR is the percentage cost of credit on a yearly basis.

When deciding which credit cards or charge accounts to maintain, you should find out the annual fee, if any; the annual percentage rate charged on money owed; and whether interest is charged from the date of the transaction or only on balances unpaid at the end of the billing period. Providers of credit compete with each other to get new customers. Some offer credit without a fee or very low interest for a certain period of time. Annual interest rates may vary by as much as 10 percentage points. It pays to shop around for credit.

Credit cards are in such wide use today that certain goods and services may be difficult to obtain without one. For example, some car rental companies will not rent to people without a major credit card.

While credit cards are an important convenience for many consumers, others use their cards to obtain “instant loans.” They regularly purchase goods and services with credit cards. Then, at the end of the month, they cannot pay the balance. The interest rate on unpaid credit card balances is almost always higher than the interest on a bank loan, so this is not a smart way to take out a loan.

If your credit card is lost or stolen, you should report it immediately to the credit card company. For protection, any person with credit cards should keep a list of the following information for each card: (1) the name of the company issuing the card, (2) the account number on the card, and (3) the number to call if the card is lost or stolen.

Many major credit card companies have toll–free 800 telephone numbers. Services offered by the companies differ, but generally you can notify them of a stolen or lost credit card, make inquiries about your bill or your account, apply for a credit card, and register a change of address.

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If your credit card is lost or stolen, you are not responsible for any unauthorized charges made after you have notified the issuer that the card is missing. The law limits your liability for charges made before notification to $50 per card. If your card was not used but the thief obtained your credit card number and made unauthorized charges, you are not responsible for any of the charges.

Find the equivalents of the following words and expressions in the text.

Расходный счет; кредит в наличной денежной форме; идентификационный номер; взимать ежегодную плату; кредитный лимит; давать право; ежемесячный расчет; срок платежа; полная сумма; дополнительные выплаты; назначать процентные выплаты с даты сделки; высчитывать; бороться друг с другом за новых клиентов; подбирать подходящий кредит; широко использоваться; удобство; немедленно сообщить в компанию, выпустившую кредитную карту; бесплатный телефонный номер; уведомить; навести справки; несанкционированные выплаты; ограничивать ответственность.

Answer the questions:

1.How can you use credit cards?

2.What are credit cards engraved with?

3.What do they entitle the holder to do?

4.Are consumers usually given a credit limit? What does it mean?

5.How is interest usually paid? How is it computed?

6.When deciding which credit cards or charge accounts to maintain what should you find out?

7.Why does it pay to shop around for credit?

8.Are credit cards in wide use in Russia today? Do you have a credit card?

9.Why is it not a smart way to use credit cards to obtain “instant loans”?

10.What should you do if your credit card is lost or stolen?

Match the words on the left with the correct definition on the right:

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Problem–solving:

The Lost Credit Cards

Sally lost her wallet, which contained credit cards from a bank and a retail store. By the time Sally realized her wallet was missing, someone had charged $800 on the bank card and $100 on the store account. Does Sally have to pay these bills?

Problem–solving:

Choose an item you would like to have but could purchase only by using credit.

a.Where could you shop for this credit?

b.What is the APR for each creditor? What other finance charges are required?

UNIT 22.

EFT Cards and Debit Cards

Read and translate the text.

In recent years, many banks have offered their customers electronic funds transfer (EFT) cards. These engraved plastic cards look like credit cards but are not credit cards. Instead, they allow you to withdraw money from your account by using an automatic teller machine.

If your EFT card is lost or stolen and you do not notify your bank within two business days after discovering its loss, you may be liable for up to $500 in unauthorized withdrawals. If you notify the bank within two business days, your loss is limited to $50.

Some businesses (such as gas stations and grocery stores) are now issuing debit cards to their customers. These cards look like credit cards but work like EFT cards. For example, when a consumer purchases gasoline using a debit card, the amount of the purchase is transferred immediately from his or her account to the gas station’s bank account.

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Billing Errors. Billing errors can be a real headache. It takes time and energy to sort them out, and they can cost you money if you don’t discover them. To avoid billing problems, check all sales slips carefully, save receipts and canceled checks, and go over each bill or monthly statement carefully.

If you still encounter a problem, the Fair Credit Billing Act provides you with a measure of protection. If you complain in writing about your bill, this law requires creditors to acknowledge and respond to your complaint within 90 days. You may withhold payment of the disputed amount pending the investigation; however, undisputed amounts must be paid as normally required. Until your complaint is settled, the law forbids the creditor from reporting the matter to a credit bureau.

If it is determined that the bill is correct, you may have to pay a finance charge on the unpaid amount in dispute. However, a creditor who does not follow the requirements of the law may not collect the first $50 of the disputed amount, even if the bill turns out to be accurate. A consumer can sue such a creditor for damages and can also recover attorney’s fees.

If you are to receive the protection of the Fair Credit Billing Act, your communication to the creditor must meet certain requirements. As noted, you must complain in writing. Phone calls do not protect your rights under this act. Your notice must be received at the creditor’s address for billing error inquiries within 60 days after the statement was first sent to you. In the notice, you must include your name, complete address, and account number. Finally, you must explain why you believe there is a billing error and state the amount of the error.

It is important to follow these requirements when complaining about a bill. Once negative information is reported to a credit bureau, it may be difficult to have it removed.

Find the equivalents of the following words and expressions in the text.

Банковский автомат; платежная карточка; карточка электронных платежей; ошибки при выписке счетов; квитанция; сталкиваться с проблемой; отреагировать на жалобу; в течение расследования; счет оказывается точным; подавать жалобу в письменном виде.

Answer the questions:

1. What steps should you take if your EFT card is lost or stolen?

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