How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 33485
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

Im a non-profit board and care for mentally ill in Los Angeles

Resolved Question:

I'm a non-profit board and care for mentally ill in Los Angeles County Calif. that 3 years ago my CFO signed waste removal contract with Waste Management Inc. It had a 3 year automatic renewal clause unless we gave notice within 90 to 180 days. 3 years expires 01/01/2011.We didn't serve notice within 90 days. Also there is a clause that gives them right of first refusal to meet or beat competitor’s price. WM price is 30% higher than local competitor. There are no issues of poor service. Renewal clause is not in 8pt bold print if that matters. The want me to sign new agreement for 36 months but at the end if I don't give notice it goes month to month (not automatic renewal) which leads me to believe there is a new law effective Jan. 01. Am I bound to this contract? www.healthview.org CEO Vernon Gettys
Submitted: 3 years ago.
Category: Business Law
Expert:  socrateaser replied 3 years ago.
There is no express California law prohibiting or limiting automatic contract renewals. However, a court has the power to refuse to enforce a contract or a clause in a contract that is unconscionable (shockingly unfair) when made. Civ. Code § 1670.5(a). And, If the buyer's consent to a contract was induced by the seller's fraud, or was given by mistake, or under duress, menace or undue influence, the buyer can rescind the contract. Civ. Code § 1689(b).

For example, if the renewal clause is inconspicuous, so that it would be easily missed at signing, that could invalidate the renewal clause for lack of actual consent. You could also argue that a 90 day notice of nonrenewal is unconscionable, because 25% of the contract remains unperformed on a 12-month contract, so you don't have a reasonable opportunity to determine whether or not you wish to cocntinue service. Moreover, the waste management company is not injured by a later notice, because it must continue to service your general area, regardless of whether or not you are a customer. So, a later termination notice does not prejudice the vendor's position.

In either case, you would have to fight it out in court (or arbitration, if the contract calls for alternative dispute resolution).

Hope this helps

NOTICE: My goal is to assist people who cannot afford traditional legal services. Without your contribution, I will be unable to continue to help others in this forum. I am always available to answering your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

Customer: replied 3 years ago.

Does the fact that the renewal clause is not 8 pt bold face font have any merit in California law like it does in property lease renewals. Also are you aware of any changes in the law because both new contracts which are for 36 months (Waste Management and new vendor) have changed from an automatic renewal if no notice is given to month to month at the end of the 36 months giving me the suspicion that the law has changed recently?

 

I personaly have contacts written that vendor notify me at least 90 days ahead of time in writing. Most are willing to comply.

Expert:  socrateaser replied 3 years ago.
Does the fact that the renewal clause is not 8 pt bold face font have any merit in California law like it does in property lease renewals.

A: The law doesn't apply to ordinary contracts. You could use it as evidence of what the legislature would view as reasonable in a contract. But, whether or not a judge would buy that argument is unknown.

Also are you aware of any changes in the law because both new contracts which are for 36 months (Waste Management and new vendor) have changed from an automatic renewal if no notice is given to month to month at the end of the 36 months giving me the suspicion that the law has changed recently?

A: I'm aware of no new law on this issue (I've looked, by find nothing). Frankly, it's the sort of thing that probably would be found in a municipal or county code. So, you would have to search your local ordinances. See http://www.municode.com/.
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 33485
Experience: Retired (mostly)
socrateaser and 8 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions