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- From: konstan@saturn.cs.umn.edu (Joe Konstan)
- Subject: Re: KMart's policy if items scan at the wrong price.
- Message-ID: <C19rpy.6AE@news2.cis.umn.edu>
- Sender: news@news2.cis.umn.edu (Usenet News Administration)
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- Organization: Department of Computer Science, University of Minnesota
- References: <C0wH3C.66I.2@cs.cmu.edu> <1jlsp6INNhc@shelley.u.washington.edu> <1_k3+rp@rpi.edu> <1jopleINNot@shelley.u.washington.edu>
- Date: Fri, 22 Jan 1993 19:05:56 GMT
- Lines: 37
-
- In article <1jopleINNot@shelley.u.washington.edu>, tzs@carson.u.washington.edu (Tim Smith) writes:
- |> You are starting off with a fundamental misconception. Breaching a
- |> contract is not a crime. In fact, contract law *ENCOURAGES* the
- |> breach of contract! The legal consequences of a breach are that the
- |> breacher will basically have to pay damages. Damages are basically
- |> awarded to cover the expectation interest of the injured party. There
- |> is almost never a punitive damage award under contract law.
-
- and he continues to explain the KMart example under contract law.
-
- I don't think this is the principle that dominates here, however. In an
- isolated case where there is a single mismarking and it is corrected
- quickly I would agree that it is fair to consider this under contract
- lay. However, what we have here is a case with large numbers of
- systematic errors. While the mismarkings aren't intentional, they are
- not being fixed and the system (as tested by the attorney general in
- California) is heavily biased towards overcharging rather than
- undercharging. This is illegal as fraud, completely apart from
- contract law. As fraud, punitive damages are not only allowable but
- customary as is the possibility of civil class action. The law
- intends to discourage fraud by making it uneconomical and therefore
- would not consider compensatory damages awarded to only the parties
- who discover the fraud to be acceptable. Frankly, I think jail time
- would be a more effective deterrent than most fines since this seems
- to be a very profitable endeavor.
-
- If you wish to view this in contract terms, an earlier poster had a
- good example. If I switch bar codes, you could allege that I merely
- made a counter-offer which was accepted when the cashier rang up the
- sale and took my money. If it was discovered, then the counter-offer
- must have been rejected. This argument will take you far (but most of
- the trip will be in handcuffs). The penalty for this form of theft
- will be far more than the few cents by which I "offered" to reduce the
- price.
-
- Joe Konstan
- konstan@cs.umn.edu
-