• CONSUMER FRAUD: Consumer fraud encompasses a wide range of fraudulent and deceptive practices in the advertising, marketing, sale, or provision of goods or services. Consumer fraud occurs when a product or service does not perform in the manner in which it was advertised or represented to perform. It may also take place when a company overcharges or charges consumers improperly for a product or service, or conceals hidden charges. Additionally, it may occur when a company improperly imposes unfair terms and conditions in standard form contracts in a manner that disadvantages consumers unfairly. It is also fraud when a corporation markets a product as safe, when it has reason to believe that it is dangerous when used as directed.
  
  
• CONSUMER FRAUD CLASS ACTIONS: Consumer fraud class actions may involve allegations that certain merchandise, services or products are not performing the way they were represented or advertised to perform (because of false advertising, product defects, or other reasons). Such class actions may also involve situations in which consumers are being overcharged, or improperly charged, for goods or services. Class actions are also appropriate when companies form contracts (for example, insurance contracts, mortgages, or loan agreements) in ways that unfairly disadvantage consumers. Finally, consumer fraud class actions are appropriate when defectively-designed products cause injury to consumers on a large scale. Examples of this type of defective product include medical implants, e.g. hip implants, and drugs and other medications that have caused injury to a consumer.
  
  
• CONCEALMENT OF TERMITES, DRY ROT OR MOLD: Under California law, the seller of a home on the secondary market has a duty to disclose the presence of known termites, dry rot or mold, and the failure of the seller to make this type of disclosure is a form of actionable fraud, for which the seller will be held fully liable. Ordinarily, a termite inspection is done every time a home is sold in the secondary market. The duties of a termite inspector encompass detection of the presence of mold, dry rot and termites. Especially in the case of homes that are more than ten years old, it is essential that the buyer obtain an accurate and thorough report of any infection or infestation by termites, dry rot, or mold. When a termite inspector has failed to use reasonable care in conducting an inspection, the termite company will be liable for all costs of eradication, remediation, and the cost of repairs, and for any accompanying personal injuries. Mold is potentially dangerous, as the fungal dust from the mold stachybotrys chartarum, commonly known as "black mold," has been associated with pulmonary hemorrhage and severe skin irritation. Exposure to mold has been identified as a potential cause of many health problems including asthma, sinusitis, and infections. It is also believed that molds play a major role in cases of "sick building syndrome" and related illnesses. While less hazardous, the presence of termite droppings can affect the enjoyment of living in a house, and structural damage from termite boring and dry rot may render a home or exterior structures such as decking structurally unsafe. Unfortunately, it is all too often the case that a seller of an older home may replace the floor coverings, drywall, and paint of an older home to spruce things up before putting the home on the market. When this happens, it is especially important that the inspection be done by a competent and diligent termite inspector.
  
  
• DECEPTIVE MARKETING: One of the primary objectives of consumer protection laws is to discourage the use of deceptive advertising and provide a remedy for consumers who have been the victims of misleading or fraudulent claims made in connection with the sale of goods and services. Laws forbidding deceptive advertising are inapplicable to "puffing," which is to say, they don't apply to general quality claims that are too vague to create warranted reliance. For example, the claim that a particular product is "doctor recommended" would probably not be considered deceptive, even if no doctors have actually recommended the product. On the other hand, a breast enlargement cream that is guaranteed to "enhance size and firmness" would be deemed deceptive if the product, in fact, had no effect on the size or firmness of a person's breast.
  
  
• DEFECTIVE PRODUCTS: The law requires that consumer goods be fit for their intended use. When products are defectively designed so that they cause injury when used as intended, the law provides a remedy for an injured consumer. Potential examples of products that have recently been reported as potentially defective in the news media are the Firestone tires placed on certain new Ford Explorers, Silicone Gel Breast Implants, certain hip replacement prosthesis, the diet medication Phen-Fen, the Bayer medication Baycol, Ford ignition systems and certain pacemaker devices. Consumers who have been injured by a defective product usually have only a brief period of time to bring a legal action. Accordingly, it is very important to seek legal assistance promptly if you have been injured by what appears to be a defective product.
  
  
• LEMON LAW: In California, the Song-Beverly Consumer Warranty Act provides protection for consumers who have purchased a defective automobile or motorhome. When a defect in a new vehicle results in the "substantial impairment" of the use, value and safety of the vehicle, the Lemon Law requires that the manufacturer repair the vehicle within a reasonable period of time, or replace the vehicle or provide a refund at the consumer's election. Under the Tanner Consumer Protection Act (Cal. Civil Code § 1793.22), a manufacturer generally must repair the vehicle within four service visits. If the vehicle is out of service for 30 days or more, or is not repaired within four service visits, the buyer is usually entitled to a refund of the purchase price. A manufacturer who willfully violates the Act may be held liable not only for the purchase price of the vehicle, but also for attorney's fees and penalties.
  
  
• PRECIOUS METALS AND COIN FRAUD: The sale of precious metals and coins to the public is typically not covered by the scheme of regulations and laws applying to the sale of securities. Because the government largely does not play an oversight role in connection with the sale of precious metals and coins, this area of investment commerce is particularly subject to overreaching and fraud, primarily directed at the elderly or unsophisticated investors. Promoters offer "investment grade" gold and silver coins, claiming their present value can be verified independently, and promising tremendous future profits, usually based on some current or political event. Often these promoters promise the opportunity to "leverage" your purchase. Leveraging, in theory, is like buying on margin, in that you only make a down payment toward the total cost of the metal you wish to buy. The rest of the money is advanced or loaned to you, with the precious metal serving as collateral. For instance, for $10,000 you might purchase 22 ounces of gold at $450 an ounce. By leveraging your purchase at 20 percent down, you could purchase five times as many ounces, or 110 ounces. The problem with a leveraged purchase occurs when the value of this precious metal decreases. As the buyer, you are responsible to cover the downturn in value by paying more money. If you fail to cover the downturn, your precious metal is sold (often at a discount), and you are liable for the difference. Leveraging is extremely risky and not recommended for the casual investor. Some schemes charge extremely high commissions, so that there must be a great increase in the value of coins or metals before you see a profit. However, the laws governing consumer fraud apply to the sale of commodities, and investors who have been the victims of unethical or dishonest sales practices should not hesitate to seek legal redress merely because commodities of this type are traditionally considered highly-speculative.

Please feel free to give us a call at 1-800-306-6010 or contact us online.