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: espencer@losgs.com
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: mireland@hppinc.org
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
-------------------
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Class 1
08/28/07
Ireland and Spencer
I.
INTRODUCTION TO CONSUMER FRAUD LAW AND
CREDIT REGULATION
First Assignment: Read Casebook pp. 153-154 - Intro to Topical
Statutes; Example of Referral Sales
A.
B.
C.
D.
E.
II.
Class 2
9/4/07
Spencer and Ireland
Introduction of Faculty and Students
Common Law Fraud
Development of Consumer Protection Laws
Overview of Class
Legislative Drafting Exercise – Organize into Groups
STATUTORY CONSUMER FRAUD
A.
General Anti-Fraud Laws
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/050
606_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
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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.ht
ml]
c.
Class 3
9/11/07
Ireland
Further work in Legislative drafting groups
2.
State Consumer Protection Laws
a. Casebook: for background review briefly pages 121152 (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
Ireland
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3.
Minnesota Consumer Protection Laws: Private Right of
Action
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)
9/18/07
b.
Class 5
9/25/07
Ireland
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B.
1.
First Two Topical Statute Reports
Topical Consumer Protection Regulation: Legislative Responses
Casebook: pages 158-174 (Preemption)
2.
Next Three Topical Statute Reports
III. REGULATION OF CREDIT
Classes 6-7
10/2/07 and 10/9/07
Spencer
A.
Disclosure/Truth-in-Lending - Regulation Z-Closed-End Credit
Casebook: pages 178-199; 207-209 (Intro/Scope/Closed-End Disclosure
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
Ireland
Class 9
10/23/07
Spencer
B.
Disclosure/Truth in Lending-Regulation Z-Open-End Credit
Casebook pages 190-199
Supplement pages 358-64; 370-86
C.
EFT: Regulation E
Supplement, pp. 580-594; 599-600
D.
Access
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)
Class 10
10/30/07
Spencer
& Ireland
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E.
Residential Mortgage Transactions: Closing Cost and Extra
Situational Disclosures; Collection Practices
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
11/06/07
Spencer
F.
Private and Public Consumer Redress Actions,
Casebook pp. 589-590
1.
2.
Class 12
11/13/07
Spencer
G.
Guest Lecturer: Plaintiff’s FDCPA Counsel
Guest Lecturer: Amber Hawkins or Legal Aid Attorney
a. Equity Stripping
b. Mortgage Flipping
c. Foreclosure Purchaser Legislation: Minn. Stat. §' 325N.10 et
seq.
Usury/Rate and Charge Limits
Casebook: pages 371-373, 434-451
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.
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Northrup King Co., 530 N.W.2d 588 (Minn. App. 1995).
Class 13
11/20/07
Ireland and Spencer
H.
Consumer Privacy
1. Telemarketing Regulation: Casebook pages 112-120.
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
11/27/07
Ireland and Spencer
I.
Third Party Liability
Casebook: pages 686-733
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.
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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:
(if necessary)
Minnesota Regulation of Automatic Dialing Systems
Assignment #15:
(if necessary)
Minnesota Restrictions on Creditor use of Social Security Numbers
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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:
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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
_______________________________________
_______________________________________
_______________________________________
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Assignment #13:
Federal Trade Commission Funeral Industry Practices Rule
_______________________________________
_______________________________________
_______________________________________
Assignment #14:
(if necessary)
Minnesota Regulation of Automatic Dialing Systems
_______________________________________
_______________________________________
_______________________________________
Assignment #15:
(if necessary)
Minnesota Restrictions on Creditor Use of Social Security Numbers
________________________________________
________________________________________
________________________________________
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