Janet Recently Learned That Her Credit Card Company Charged Her

question 63

Multiple Choice

Janet recently learned that her credit card company charged her an unauthorized amount of 94 cents on her credit card bill.She reviewed the matter and determined that this charge had been made on a monthly basis for several months.She consulted with a lawyer who told her that in the circumstances the best procedural approach to addressing the problem was for her to

• A)issue a claim in Small Claims Court for the few dollars that she had been improperly charged.
• B)commence court proceedings in Superior Court seeking a greater amount for legal costs.
• C)do nothing given the small amount at stake and the costs of litigation.
• D)seek to have the action against the credit card company certified as a class action thereby allowing her to represent the entire group of possible class members,i.e.those who likewise were billed an unauthorized amount by the credit card company.
• E)forget any court proceedings but try to attract media attention.

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Definitions:

Indirect Expenses

Expenses that cannot be directly traced to a specific cost object, such as rent, utilities, and administrative salaries.

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services.

Overhead

The ongoing administrative and operational costs not directly attributable to the production of goods or services, such as rent and utilities.

Residual Income

The income that remains after deducting all required costs of capital from operating profits, often used to assess divisional or project performance.