Dell is getting sued for Bait and Switch

Discussion in 'Current Events' started by zac4mac, Feb 22, 2005.

  1. iGary Guest

    iGary

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  2. Phat_Pat macrumors 68000

    Phat_Pat

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  3. aswitcher macrumors 603

    aswitcher

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    #4
    Well I guess that sums up the ethics of the company and its belief in its products...
     
  4. PlaceofDis macrumors Core

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    #5
    innovated how to make money while seeming to have cheap products?? yes but thats all
     
  5. Sun Baked macrumors G5

    Sun Baked

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    #6
    If they don't use the "credit score" and uniformly aply a rather normal standard, they can get slammed very heavy for this type of fraud.

    Financial crimes related to loans are heavy penalties for any company.

    However, selling low priced computers and advertising an introductory rate is a common business practice -- but you do have to let people know ahead of time.

    ---

    The bait and switch is especially bad, since some of these people do have credit cards they can use -- but the salesperson talks them into Dell financing, or automatically switches them to it according to some reports.

    Dell and Rip-Off Reports
     
  6. clayj macrumors 604

    clayj

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    #7
    In case you didn't know, or didn't get to the end of the story, the law firm that's suing (Lerach et al) is widely known as a corporate shakedown artist... they sue EVERYONE for huge sums of money just so they can force settlements. These guys are SCUM, no matter who they're representing.
     
  7. Chip NoVaMac macrumors G3

    Chip NoVaMac

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    #8
    The problem is consumers. they don't read the terms closely.

    Add to that I had no problem in getting the interest free financing.
     
  8. quagmire macrumors 603

    quagmire

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    #9
    Thats lower then Apple switching new with refurbs. At least you get the same quality parts and the same specs.
     
  9. Chip NoVaMac macrumors G3

    Chip NoVaMac

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    #10
    Guess they had to get one last lawsuit in with the new law. thanks to the likes of them, the consumers may loose long term.
     
  10. daveL macrumors 68020

    daveL

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    #11
    In the wake of Enron, et al, I'm not surprised by this at all. Dell has been in a very awkward position for several years in that they have to meet the very aggressive growth/profit expectation of their investors. That's very difficult to do in a commodity market like Intel PCs; even IBM gave up.
     
  11. imac9556 macrumors 6502a

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    #12
    DELL DESERVES IT!
    I got screwed by them too, they charged me for something that was supposed to be free as "gift", and they said they will fix the problem by contacting my sales person. Well that jack@ss lady never called me back who setup the order and I ended up have to pay for the laptop bag.
    Thinking about it, I should sue them too!
     
  12. absolut_mac macrumors 6502a

    absolut_mac

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    #13
    You mean that you actually got interest free financing from Dell, or from their financial partner?
     
  13. Mechcozmo macrumors 603

    Mechcozmo

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    #14
    Just because of the fact that I hate Dell's as computers, :D

    But I hate lawyers who sue for no reason. But if that nurse has a valid case, then let those lawyer's fly!
    (It's 21st century warfare. We don't shoot them, we sue them!)
     
  14. clayj macrumors 604

    clayj

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    #15
    See, the problem here is that law firms like Lerach seek out people like the woman who's heading up the class action suit, just so they can shake down companies like Dell. It's law firms like this that cause us all to pay more for the things we buy on a daily basis... just as BASF makes the things you buy, better, Lerach makes the things you buy, more expensive. I ain't saying that Dell's innocent of wrongdoing, just that they may be getting screwed over here by a bunch of overzealous attorneys.

    Thank goodness for the recent law that restricts class action cases to Federal court. It'll definitely put a crimp in the lifestyle of jerk lawyers who do nothing but sue, sue, sue.
     
  15. Jon'sLightBulbs macrumors 6502a

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    #16
    Actually, soliciting unsubstantiated lawsuits is unlawful in most jurisdictions; it's called barratry, and it's prohibited and sanctioned under rule 11 of the federal rules of civil procedure (and its state court progeny).

    Of interest:

    Par. 21 of Lerach's complaint: "Dell's sophisticated operational systems are well known in the industry and are frequently the subject of news articles and business case studies."

    Immediately followed by par 22: "In contrast to Dell's sophistication, Dell admits that its consumer customers are unsophisticated. In recently filed legal proceedings to protect Dell's trademark, Dell claimed: 'Because Dell sells its products over the internet to anyone who wishes to purchase them, the relevant consumers include many who are relatively unsophisticated.'"


    Amazing what a little crafty wordsmithing can yield. :D Draws an evil caricature of Dell using the beheamoth's own words.


    More importantly, if anyone believes that this lawsuit is unsubstantiated on the pleadings alone, par. 36(b) of the complaint alleges:

    "The full terms of ... agreements... are not revealed until the first bill is sent to the consumer. At the time the customer recieves his/her first bill and the terms of defendants' financing, the return period for the computer has already passed. Financing class members are left with loans with much higher annual percentave rates and other hidden fees than they believe that they agreed to in their original application. "

    Overzealous lawyering this is not.
     
  16. Chip NoVaMac macrumors G3

    Chip NoVaMac

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    #17
    Through Dell Financial, the Dell Preferred Card
     
  17. savar macrumors 68000

    savar

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    #18
    Hell, I don't feel any sympathy for large corporations. I would fleece them too if I had a law degree right now.

    The real problem is the perverse incentives that our tort system provides. For a law firm to sue a company costs them very little...the largest expense is the opportunity cost. (If they lose the case, they lose the money they might have won on a better case.) Arbitrarily limiting class action lawsuits is the wrong, wrong answer.

    How about if the loser pays for some portion of the winner's court fees, according to how indelible the blame is. I believe in the UK you have to pay the defendants legal fees if you lose. If big firms aren't doing anything bad, then they shouldn't have anything to fear in standing up for themselves.
     
  18. Mechcozmo macrumors 603

    Mechcozmo

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    #19
    I hate lawyers like that... didn't read enough about that law firm. My dad is a general surgeon, you want to talk about malpractice lawyers being ****ers...


    But it is Dell... decisions, decisions... :p
    Damn lawyers.
     
  19. GFLPraxis macrumors 604

    GFLPraxis

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    #20

    Woah. I know someone who had this happen to her. She ended up paying twice what she intended to.

    Now, she shudders every time I say the word Dell. Quite funny, actually :D

    Wonder if she can get a peice of them out of this lawsuit?
     
  20. acedickson macrumors 6502a

    acedickson

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    #21
    Glad I didn't buy anything from Dell, let alone finance anything. That's horrible to pull a scheme like that.
     
  21. Chip NoVaMac macrumors G3

    Chip NoVaMac

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    #22
    Hence I am thinking with the new law this week or last, we are throwing out the baby with the bath water. My only hope is that the federal courts will step up to the plate to protect consumers, than the "big money" interests.
     
  22. SteveC macrumors 6502

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    #23
    This is the most hilarious part of the article:

    LOL LOL LOL

    *Riiiiiight.........* *rolls eyes....*
     
  23. BigDogg macrumors member

    BigDogg

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