When Financial Institutions Tempt Customers by Paying Postage Both Ways

question 3

Short Answer

When financial institutions tempt customers by paying postage both ways in bank-by-mail services or by offering free gifts such as teddy bears,they are practicing __________.

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Definitions:

Common Law

A body of laws based on judicial decisions and customs, rather than statutory laws passed by a legislature.

Adequate Consideration

A fair and reasonable value exchanged in a contract, ensuring that all parties receive something of value.

Arbitration Clause

A provision in a contract that requires the parties to resolve disputes through arbitration rather than through litigation in court.

Preexisting Duty

An obligation that a party is already legally bound to, which cannot serve as consideration for a new contract.