Consumer Transactions

SPENCER/IRELAND

CONSUMER TRANSACTIONS

Fall 2005

Instructors: Eldon Spencer, Shareholder

Leonard, O=Brien, Spencer, Gale & Sayre, Ltd.

100 South Fifth Street, Suite 2500

Minneapolis, MN 55402

(612) 332-1030

Email:

Mark Ireland

Foreclosure Relief Law Project

Housing Preservation Project

570 Asbury Street, Suite 105

St. Paul, MN 55104

Phone: 651.642.0102 x 107

Email:

Text: Michael Greenfield, Consumer Transactions, 4th Ed. (Foundation Press 2003)

Scope of course: This course explores the regulation of consumer transactions in the United States. While the course covers common law topics of general application, it focuses with particular emphasis on financial-type transactions, and on Minnesota consumer protection laws.

Class Attendance: Because of the small anticipated class size (under 30) and the significant amount of material to be covered in each class, our policy will be to allow only one unexcused absence. Excuses for any additional absences will be in our sole discretion. Please call the teacher in charge of the class by 3:00 p.m. on class days if it looks like you will not be able to attend all or part of a class, or speak with one of us before the first class if this policy imposes any unique burdens on you.

Grading: *Final Exam (60% multiple choice and 40% essay)

*Multiple Choice Questions:

8 on Consumer Fraud

16 on Credit Regulation

6 on class presentations/guest lecturer

*Open Book/Materials Exam

*Grade includes two Small Group Presentations

- - - - - - - - - - - - - - - - - - -

Class 1 I. INTRODUCTION TO CONSUMER FRAUD LAW AND

08/28/07 CREDIT REGULATION

Ireland and Spencer First Assignment: Read Casebook pp. 153-154 - Intro to Topical Statutes; Example of Referral Sales

A. Introduction of Faculty and Students

B. Common Law Fraud

C. Development of Consumer Protection Laws

D. Overview of Class

E. Legislative Drafting Exercise – Organize into Groups

II. STATUTORY CONSUMER FRAUD

Class 2 A. General Anti-Fraud Laws

9/4/07

Spencer and Ireland 1. Federal Consumer Protection Regulation and Redress Enforcement Standards

a. FTC: Casebook: pages 61-74, 491-506 (In Re International Harvester), and 74-86 (In Re Leon A. Tashof)

b. FTC Website Links to cases:

Security breach

In the Matter of BJ's Wholesale Club, Inc. [http://www.ftc.gov/os/caselist/0423160/0423160.html

Ohio v, DSW, Inc. [http://www.ag.state.oh.us/press%5Freleases/attachments/050606_complaint.pdf]

Billing Practices

Federal Trade Commission v. Conversion Marketing Inc., et al. [http://www.ftc.gov/os/caselist/0423079/0423079.html]

FTC v. Frankly Speaking, Inc. et al. [http://www.ftc.gov/os/caselist/0423072/0423072.html]

Customer Privacy

In the Matter of Vision I Properties, LLC [http://www.ftc.gov/os/caselist/0423068/0423068.html]

Internet Marketing

FTC v. Seismic Entertainment Productions, Inc., et al. [http://www.ftc.gov/os/caselist/0423142/0423142.html]

FTC v. Optin Global (preliminary injunction hearing is scheduled for June 27)

[http://www.ftc.gov/os/caselist/0423172/0423172.html]

Rebates

In the Matter of Comp USA, Inc. [http://www.ftc.gov/os/caselist/0223278/0223278compusa.html]

c. Further work in Legislative drafting groups

Class 3 2. State Consumer Protection Laws

9/11/07 a. Casebook: for background review briefly pages 121-

Ireland 152 (Searle v. Exley Express, Inc,

Weitzel v. Barnes; Weigel v. Ron Tonkin Chevrolet Co.; Golt v. Phillips; Fenwick v. Kay American Jeep, Inc.)

b. We will discuss following Minnesota Statutes: Minn. Stat. 325D. 43 et seq. ; §§ 325F. 67; and 325F .68-.69- and cases: State of Minnesota by Humphrey v. Alpine Air Products,Inc., 490 N.W. 2d 888 (Minn. App. 1992), aff’d, 500 N.W. 2d 788 (Minn. 1993).; State of Minnesota, by Hatch v. Fleet Mortgage Corp., 158 F. Supp.2d 962 (D. Minn. 2001); and Wigand v Walser, 683 N.W. 2d 801 (Minn. 2004)

c. Reports of Legislative Drafting Groups

Class 4 3. Minnesota Consumer Protection Laws: Private Right of

Ireland Action

9/18/07 a. Read Minn. Stat. '8.31 and 325F.69, subd. 1 (Ly v. Nystrom, 615 N.W.2d 302 (Minn. 2000) and Group Health Plan, Inc. v. Phillip Morris, Inc., 621 N.W.2d 2(Minn. 2001)

b. First Two Topical Statute Reports

Class 5 B. Topical Consumer Protection Regulation: Legislative Responses

9/25/07

Ireland 1. Casebook: pages 158-174 (Preemption)

2. Next Three Topical Statute Reports

III. REGULATION OF CREDIT

Classes 6-7 A. Disclosure/Truth-in-Lending - Regulation Z-Closed-End Credit

10/2/07 and 10/9/07 Casebook: pages 178-199; 207-209 (Intro/Scope/Closed-End Disclosure

Spencer Rules);

Supplement: pages 347-358, 390-96, 402-403, 409-414, 416-417

Casebook: pages 209-213 (Terminology/Advertising); 213-215 (Enforcement)

Supplement: pages 405-406 (Advertising); 175, 187-190, 213-217 (Enforcement).

Class 8

10/16/07 B. Disclosure/Truth in Lending-Regulation Z-Open-End Credit

Ireland Casebook pages 190-199

Supplement pages 358-64; 370-86

C. EFT: Regulation E

Supplement, pp. 580-594; 599-600

Class 9 D. Access

10/23/07

Spencer 1. Fair Credit Reporting

Casebook: pages 220-236 (FCRA) (obligations of users and providers)

Supplement: pages 257-287 (FCRA)

2. Equal Credit Opportunity/Regulation B

Casebook: pages 258-289 (ECOA)

Supplement: pages 302-313, 509-534 (ECOA and Reg. B)

364735

Class 10 E. Residential Mortgage Transactions: Closing Cost and Extra

10/30/07 Situational Disclosures; Collection Practices

Spencer

& Ireland 1. RESPA, Right of Rescission and HOEPA

a. RESPA: Casebook: Pages 188, 404-419 statute: 12 U.S.C. 2601 et seq.; Regulation X, 24 CFR pt. 3500

b. Right of Rescission, Casebook pp. 740-742 12 C.F.R. §226.23

c. HOEPA, 12 C.F.R. §§226.31, .32, and .34

2. Fair Debt Collection Practices Act

a. Federal Law: Casebook pp. 589-90; 15 USC. §§1692, 1692 m, Supp. Pp. 314-325

b. State Law: collection agency regulation

Class 11 F. Private and Public Consumer Redress Actions,

11/06/07 Casebook pp. 589-590

Spencer

1. Guest Lecturer: Plaintiff’s FDCPA Counsel

2. Guest Lecturer: Amber Hawkins or Legal Aid Attorney

a. Equity Stripping

b. Mortgage Flipping

c. Foreclosure Purchaser Legislation: Minn. Stat. §' 325N.10 et seq.

Class 12 G. Usury/Rate and Charge Limits

11/13/07 Casebook: pages 371-373, 434-451

Spencer Not in Course Material: Minn. Stat. §§47.59, 47.60, 334.01, 334.011,

334.022, 334.03, 334.19, 334.20.

LAST NAMES A – B (6): Compare E.C. Warner Co. v. W.B. Foshay Co., 57 F.2d 656 (8th Cir. 1932) with Jenkins v. Union Savings Ass=n., 155 N.W. 765 (Minn. 1916) and Mueller v. Ober, 215 N.W. 781 (Minn. 1927);

LAST NAMES C-G (5): Compare Minn. Stat. '47.59 with Minn. Stat. '47.60

LAST NAMES H and M (6): Compare American Druggists, Inc. v. Thompson Lumber Co., 349 N.W.2d 569 (Minn. App. 1984) with Katz & Lange, Ltd. v. Bergen, 356 N.W.2d 733 (Minn. 1984);

LAST NAMES K (6): Compare Schauman v. Solmica Midwest, Inc., 168 N.W.2d 667 (Minn. 1969) with St. Paul Bank for Cooperatives v. Ohman, 402 N.W.2d 235 (Minn. App. 1987);

LAST NAMES N and W (5): Compare Fogie v. Thorn Americas, Inc., 95 F.3d 645 (8th Cir. 1996) with Barton v. Moore, 558 N.W.2d 746 (1997) and Washington Federal Savings Ass'n v. Baker, 374 N.W.2d 786 (Minn. App. 1985)

LAST NAMES L (5): Review Minn. Stat. §325G.21-22; Moyer v. International State Bank, 404 N.W.2d 274 (Minn. 1987).

LAST NAMES S-V and Y (6): Compare VanderWeyst v. First State Bank of Benson, 425 N.W.2d 803 (Minn. 1987) with Widmark v. Northrup King Co., 530 N.W.2d 588 (Minn. App. 1995).

Class 13 H. Consumer Privacy

11/20/07 1. Telemarketing Regulation: Casebook pages 112-120.

Ireland and Spencer 2. GLB Privacy Disclosures

3. CANSPAM, FACTA, USA Patriot Act, and other legislation

4. Servicemembers’ Civil Relief Act; John Warner National

Defense Act

Class 14 I. Third Party Liability

11/27/07 Casebook: pages 686-733

Ireland and Spencer FTC "Holder Rule," 16 CFR pt. 433 (Supplement pages 59-61); LaBarre v. Credit Acceptance Corp., 175 F.3d 640 (8th Cir. 1999); State of Minnesota v. Keaton Modeling Management, Inc., 1996 WL 146484, No. C6-95-2212 (Minn. App. April 2, 1996) (unpublished); State of Minnesota by Hatch v. Fleet Mortgage Corp. (see Class 4); In the Matter of First Premier Bank Assurance of Discontinuance (to be distributed)

Final Exams: Dec. 8-20: Date and Time to be Announced for our exam.

364735

CLASS PRESENTATION TOPICS

In the Week 2 class, students will sign up for a presentation to be delivered in class, one per week, starting in Week 3, with three in the second part of class 10 and none in class 12. The presentations will consist of an explication of a consumer protection statute, either under Minnesota law or federal law. Students will complete the presentations (cooperatively) in groups of two students per topic. Plan on the presentations taking about 15 minutes, including questions from the class. The goal is to impart a general understanding of the statute or subject.

Assignment #1: Minnesota New Motor Vehicle Warranty Law

(ALemon Law@ for new motor vehicle purchases)

Assignment #2: Minnesota Home Solicitation Sales Law

(3 Day Right to Cancel)

Assignment #3: Minnesota Rental Purchase Agreements Law

Assignment #4: Federal Trade Commission Credit Practices Rule

Assignment #5: Minnesota Invention Services Act

Assignment #6: Minnesota Dishonored Checks Law

Assignment #7: Federal Trade Commission Used Car Rule/Minnesota Used Car Warranty Act (compare)

Assignment #8: Minn. Manufactured Home Park Lot Rental Act

Assignment #9: Federal Magnuson-Moss Warranty Act

Assignment #10: Minnesota Club Contracts Law

Assignment #11: Federal Odometer Act

Assignment #12: Minnesota Motor Vehicle Retail Installment Sales Act

Assignment #13: Federal Trade Commission Funeral Industry Practices Rule

Assignment #14: Minnesota Regulation of Automatic Dialing Systems

(if necessary)

Assignment #15: Minnesota Restrictions on Creditor use of Social Security Numbers

(if necessary)

364735

SIGN-UP SHEET

Two Students Per Assignment

Assignment #1: Minnesota New Motor Vehicle Warranty Law

(ALemon Law@ for new motor vehicle purchases)

_______________________________________

Assignment #2: Minnesota Home Solicitation Sales Law

(3 Day Right to Cancel)

_______________________________________

Assignment #3: Minnesota Rental Purchase Agreements Law

_______________________________________

Assignment #4: Federal Trade Commission Credit Practices Rule

_______________________________________

Assignment #5: Minnesota Invention Services Act

_______________________________________

Assignment #6: Minnesota Dishonored Checks Law

_______________________________________

Assignment #7: Federal Trade Commission Used Car Rule/Minnesota Used Car Warranty Act (compare)

_______________________________________

Assignment #8: Minnesota Manufactured Home Park Lot Rental Act

_______________________________________

Assignment #9: Federal Magnuson-Moss Warranty Act

_______________________________________

Assignment #10: Minnesota Club Contracts Law

_______________________________________

Assignment #11: Federal Odometer Act

_______________________________________

Assignment #12: Minnesota Motor Vehicle Retail Installment Sales Act

_______________________________________

Assignment #13: Federal Trade Commission Funeral Industry Practices Rule

_______________________________________

Assignment #14: Minnesota Regulation of Automatic Dialing Systems

(if necessary)

_______________________________________

Assignment #15: Minnesota Restrictions on Creditor Use of Social Security Numbers

(if necessary)

________________________________________

364735