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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116716
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I own a restaurant and have been doing business with a linen

Customer Question

I own a restaurant and have been doing business with a linen company for a decade. The have made their investment back on their products and service many times over. They recently came in to have me sign a new agreement. I refused as I was going to begin service with another company. They showed me that the last agreement I signed said that I had to notify them by registered mail that I wish to cancel 90 days before the termination of the agreement or else the agreement would be automatically renewed for 60 months. When I said that was ridiculous, they said I have to stay with them for atleast another year. This all seems absolutely ridiculous as they can put their towels and napkins anywhere.....they management was very rude and instead of working with me, the were very condenscending. Do they have a leg to stand on if I just leave?
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.
CA did not have a provision in the law regarding automatic renewal clauses. You would have to argue that this is an unfair and deceptive trade practice in that you did not receive notice of the automatic renewal before the date that notice had to be given to cancel the contract and you can seek to file a complaint with the CA Attorney General's Consumer Protection Unit. If you leave they will try to sue you and you would have to argue their unfair/deceptive practice as your defense to their action. You should use the unfair and deceptive business practice as your argument with them to cancel the contract and should send them a letter telling them that in so much as they did not notify you in advance of the cancellation period this was an unfair and deceptive practice and as such you are notifying them immediately your intent to cancel the contract and if they fail to cancel within 90 days you will pursue the matter to the Attorney General's Office and then negotiate with them.

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