Credit reporting agencies and the fdcpa


Please analyse questions illustrated below:

Problem 1: Joe and Sue Hill were involved in the operation of Joe's Hamburger Joint in Miracle, State of Nowhere, from the day their parents opened it in 1928. By 1979, Joe, Sue and her husband Jim were running it. The business was a corporation with Joe and Sue each owning half of the stock. Joe died in 2001, leaving his stock in equal shares to his sons, Gregg and Mike. Son Gregg never worked there. Mike did occasional maintenance work until his father's death. Despite their lack of participation, the sons were paid more than $900 per week each. In 2000, Sue's son Lawrence, who had graduated with a degree in restaurant management, that he earned while working part-time at the restaurant, took over its management. When his cousins became threatening, he denied them access to the business and its books. Sue refused Gregg and Mike's offer of about $1.4 million for her stock in the restaurant, and they refused her offer of about $800,000 for theirs. They filed a suit against her, claiming, among other things, breach of fiduciary duty. Should the court order the aunt to buy out the nephews or the nephews to buy out the aunt, or neither? Why?

Problem 2: Equifax A.R.S., a debt-collection agency, sent Donna Russell a notice about one of her debts. The front of the notice stated that "[i]f you do not dispute this claim (see reverse side) and wish to pay it within the next 10 days we will not post this collection to your file." The reverse side set out Russell's rights under the Fair Debt Collection Practices Act (FDCPA), including that she had thirty days to decide whether to contest the claim. Russell filed a suit in a federal district court against Equifax. The court ruled against Russell, who appealed. On what basis might Russell argue that Equifax violated the FDCPA?

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Business Law and Ethics: Credit reporting agencies and the fdcpa
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