BCORE 380 Business Ethics: Auto- Renewal Project

Below I attached the project instructions and a real case example of an auto renewal contract. There are also questions that I came up with and real answers I received.

-For research as interview questions, I have 1 response but i need to include 2 more “people”. Be creative and come up with answers. If you have some more questions to add feel free

-For the online research include 2-3 examples.APA in required for sources

-whole project minimum 1000 words

CLASS PROJECT INSTRUCTIONS
The BCOR 380 – Business Ethics Class Project concerns the use and abuse of contract auto-renewal policies. A
true case example, affecting home owners in Morgantown, West Virginia will be given. Each student (team
papers are not accepted) is then invited to write a 1,000-word paper describing their own research into how
consumers, from I-phone users to vehicle owners, feel about self-renewing contracts. The paper’s make-up
should: first, reflect research as interview questions posed to individuals concerning their feelings, and any
issues they might have had with self-renewing contracts; second, show your online research into any court
cases or discussions regarding self-renewing contracts; third provide your own conclusions as to whether or
not this perfectly legal practice is, in general, conducted ethically or unethically; and close with what this class
project tells you about the distinction between business ethics and business law.
CLASS PROJECT RUBRIC
5 Points – Heading
This should provide the title: BCOR 380-001 – Class Project – Fall 2022 – The due date: October 3, 2022 and
your name. Five points will be deducted for each day the assignment is late.
5 Points – Neatness
The font should be one standardly used in papers and be 12 pt. Points will be lost for misspelled words or an
unprofessional appearance. Images are not needed.
40 Points – Research, as interview questions posed to individuals, concerning their feelings, and any issues
they had, involving self-renewing contracts
Sources should be identified as contract holders: e.g., a home security contract holder; an app contract holder;
an I-phone contract holder; a lease holder; etc. For research that only extends as far as one’s family and
friends, 20 points will be given. For research that reflects initiative, e.g., interviews with businesses, or with
professionals, or even with a sales person whose company utilizes self-renewing contracts, another 20 points
is given. WVU employees and faculty are not to be approached regarding this project.
30 Points – Online research into any court cases or public discussions regarding self-renewing contracts
There is evidence that bill collection agencies are heavily involved in this issue because most people don’t read
the fine print in their contracts and assume that their “twelve-month” contract is over after one year. Dig
deep, your interviews might give you some leads for this part of your research. To have all 30 points, your
references must be cited, both in-text, and at the end of your paper using APA citation.1
10 Points – Your conclusions, from your research, as to whether or not this perfectly legal practice should be
given further attention in Business Ethics textbooks
This part should be given about 100 words.
10 Points – Close with what your research tells you about the distinction between business ethics and
business law
This part should be given about 100 words.
1. If you are unfamiliar with APA and are using a Word document, click on References, under Style, choose APA,
open Insert Citation and click on “add new source.” Then fill-in the boxes as instructed. If not using Word,
Google-search “APA Citation” and you will be taken to one of several helpful sites. The WVU Library also
provides a link on APA Citation.
THIS CASE EXAMPLE IS BASED ON A TRUE STORY IN THE MORGANTOWN AREA
COURSE PROJECT – Due October 3, The BCOR 380 – Business Ethics Class Project concerns the use and abuse of contract
auto-renewal policies. Each student (team papers are not accepted) is then invited to write a 1,000-word paper
describing their own research into how consumers, from I-phone users to vehicle owners, feel about self-renewing
contracts. The paper’s make-up should:
First, reflect research as interview questions posed to individuals concerning their feelings, and any issues they might
have had with self-renewing contracts.
Second, show your online research into any court cases or discussions regarding self-renewing contracts.
Third, provide your own conclusion as to whether or not this lawful practice is conducted ethically or unethically.
Finally, close with what this class project tells you about the distinction between business ethics and business law.
This project is inspired by an actual case* involving a home security plan.
The BankVault Home Security Case
In January of 2016, Pat and Jaimie purchased a home security system, monitored and controlled by a company
whose ads promised to keep their home safe as a bank vault. The sales person who came to enroll them in the
plan reviewed all of its advantages. One contract covered the cost of door and window sensors, which the
“Buyer” owns and another covered a “five year” contract for monitoring services.
Pat and Jaimie, as senior citizens, fully trusted the very friendly sales rep who then handed them a contract on
a single sheet of legal-size paper, printed on both sides containing over 3,000 words in very fine print. With
the sales person sitting there staring at them, and realizing that it could take a half hour or more to read all
that fine print, they did not get past item #2 which clearly said, just as the sales rep said: “This agreement shall
continue for a period of five years.” They signed the contract and filed it in the drawer where they kept such
documents.
Unfortunately, Pat and Jaimie assumed that, at the end of the five years, they would be asked by BankVault if
they want to renew or not renew; but the company wanted a guaranteed renewal. So, they put this in the fine
print: “The agreement shall automatically renew, without action by either party (Pat & Jaimie won’t be asked)
under the same terms and conditions for successive periods, equal to the initial conditions, unless either party
gives to the other written notice, at least 30 days prior to the expiration date.”
The monthly fee was $27/month. It is now the summer of 2020. Pat and Jaimie have paid the contract to the
end of its term (January 2021) and sold the house. However, the contract does not attach to the house but to
the buyer and “This agreement is not assignable to another party except with consent of the seller.”
It is now May of 2021 and, at their new home, they receive a bill from Stressor & Threter Collection Agency for
$1,620 plus collection fees and late payment fees for another $300. They are told that if they do not pay, a lien
will be placed against their new home.
* All names have been changed.
Our task, as a class, is to learn:
1. Is this sort of thing rare or common? (How many of you read all the fine print before clicking on “accept”)
2. What makes some auto-renewal policies deceptive?
3. Do companies force auto-renewals by creating barriers to cancellation – like forcing password changes
every six months, fine print, or exempting themselves from informing a client that a required renewal is
pending?
4. Are there other case examples out there or is the Pat & Jaimie case an exception?
5. It is easy to see how auto-renewals benefit companies. Do they offer anything of value to consumers?
6. What are some companies doing to make them fair?
7. Should auto-renewals be outlawed as a matter of consumer protection?