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Nancy...got a weird question for you.
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<blockquote data-quote="DammitJanet" data-source="post: 631039" data-attributes="member: 1514"><p>An action under § 75-1.1 is a creation of statute. It exists independently and is usually tacked on to a common law cause of action. It sits on top of, and is distinct from actions of fraud, breach of contract, and breach of warranty.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-7" target="_blank">[7]</a> The statute is applicable to sales transactions covered by the Uniform Commercial Code and may afford relief even when the U.C.C. does not.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-8" target="_blank">[8]</a> These claims tend to involve buyer and seller relationships although actions based on other types of commercial relationships are recognized.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-9" target="_blank">[9]</a> Furthermore, only those “engaged in business, a commercial or industrial establishment or enterprise” can be held liable under the statute.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-10" target="_blank">[10]</a></p><p></p><p><span style="font-size: 18px"><strong>Standing[<a href="http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit&section=2" target="_blank">edit</a>]</strong></span></p><p>Under the North Carolina statute, both individuals, through a private cause of action, and the State, through the Attorney General, can raise a claim for unfair and deceptive trade practices.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-11" target="_blank">[11]</a> The Attorney General is responsible for investigating all corporations or persons in North Carolina doing business in violation of the law.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-12" target="_blank">[12]</a> Persons or corporations that violate any of the provisions of Chapter 75 may be subject to criminal sanctions in prosecutions brought by the state Attorney General, remedies through civil actions brought and prosecuted by the Attorney General, damages in private causes of action by injured persons, or any permissible combination.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-13" target="_blank">[13]</a></p><p></p><p><span style="font-size: 18px"><strong>Federal Law[<a href="http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit&section=3" target="_blank">edit</a>]</strong></span></p><p>Federal decisions under the Federal Trade Commission Act may be used as guidance by North Carolina courts in determining the scope and meaning of North Carolina’s UDTPA.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-14" target="_blank">[14]</a> And, as with all federal laws, where applicable, the FTCA will preempt the state law on unfair and deceptive trade practices.</p><p></p><p><span style="font-size: 18px"><strong>Prima Facie Case[<a href="http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit&section=4" target="_blank">edit</a>]</strong></span></p><p><span style="font-size: 15px"><strong>Three-Part Test[<a href="http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit&section=5" target="_blank">edit</a>]</strong></span></p><p>A claim under this statute requires proof of three elements: (1) an unfair or deceptive act or practice; (2) in or affecting commerce; (3) which proximately caused the injury to the claimant.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-15" target="_blank">[15]</a> <a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-16" target="_blank">[16]</a> A court will first determine if the act or practice was “in or affecting commerce” before determining if the act or practice was unfair or deceptive.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-17" target="_blank">[17]</a></p><p></p><p><span style="font-size: 12px"><strong>Unfair and Deceptive Definition[<a href="http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit&section=6" target="_blank">edit</a>]</strong></span></p><p>A practice is unfair when it offends established public policy or when the act or practice is “immoral, unethical, oppressive, unscrupulous, or substantially injurious to consumers.”<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-18" target="_blank">[18]</a> A party is guilty of an unfair act or practice when it engages in conduct which amounts to an inequitable assertion of its power or position.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-19" target="_blank">[19]</a> <a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-20" target="_blank">[20]</a> For an act or practice to be deceptive it must have “the capacity or tendency to deceive” but proof of actual deception is not required.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-21" target="_blank">[21]</a> <a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-22" target="_blank">[22]</a></p><p></p><p></p><p>Deliberate acts of deceit or bad faith do not have to be shown, rather, the claimant must demonstrate that the act or practice possessed the tendency and capacity to mislead or created the likelihood of deception.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-23" target="_blank">[23]</a> Additionally, it is not required that the claimant actually relies on the deception in order to prevail; actual reliance is not a factor to be considered.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-24" target="_blank">[24]</a> While bad faith is not required to prevail under the statute, good faith will still not be a defense.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-25" target="_blank">[25]</a> Because an act or practice still has the capacity to deceive, regardless of the presence or absence of good faith on the part of the offending party, the intent of the actor is irrelevant.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-26" target="_blank">[26]</a> <a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-27" target="_blank">[27]</a></p><p></p><p></p><p>Unfairness is a broader concept than, and includes the concept of, deceptiveness.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-28" target="_blank">[28]</a> However, only one—either unfairness or deceptiveness—is required to bring the act or practice within the statute.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-29" target="_blank">[29]</a> There is no requirement that the act or practice be both unfair and deceptive.<a href="http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-30" target="_blank">[30]</a></p></blockquote><p></p>
[QUOTE="DammitJanet, post: 631039, member: 1514"] An action under § 75-1.1 is a creation of statute. It exists independently and is usually tacked on to a common law cause of action. It sits on top of, and is distinct from actions of fraud, breach of contract, and breach of warranty.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-7'][7][/URL] The statute is applicable to sales transactions covered by the Uniform Commercial Code and may afford relief even when the U.C.C. does not.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-8'][8][/URL] These claims tend to involve buyer and seller relationships although actions based on other types of commercial relationships are recognized.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-9'][9][/URL] Furthermore, only those “engaged in business, a commercial or industrial establishment or enterprise” can be held liable under the statute.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-10'][10][/URL] [SIZE=5][B]Standing[[URL='http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit§ion=2']edit[/URL]][/B][/SIZE] Under the North Carolina statute, both individuals, through a private cause of action, and the State, through the Attorney General, can raise a claim for unfair and deceptive trade practices.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-11'][11][/URL] The Attorney General is responsible for investigating all corporations or persons in North Carolina doing business in violation of the law.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-12'][12][/URL] Persons or corporations that violate any of the provisions of Chapter 75 may be subject to criminal sanctions in prosecutions brought by the state Attorney General, remedies through civil actions brought and prosecuted by the Attorney General, damages in private causes of action by injured persons, or any permissible combination.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-13'][13][/URL] [SIZE=5][B]Federal Law[[URL='http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit§ion=3']edit[/URL]][/B][/SIZE] Federal decisions under the Federal Trade Commission Act may be used as guidance by North Carolina courts in determining the scope and meaning of North Carolina’s UDTPA.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-14'][14][/URL] And, as with all federal laws, where applicable, the FTCA will preempt the state law on unfair and deceptive trade practices. [SIZE=5][B]Prima Facie Case[[URL='http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit§ion=4']edit[/URL]][/B][/SIZE] [SIZE=4][B]Three-Part Test[[URL='http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit§ion=5']edit[/URL]][/B][/SIZE] A claim under this statute requires proof of three elements: (1) an unfair or deceptive act or practice; (2) in or affecting commerce; (3) which proximately caused the injury to the claimant.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-15'][15][/URL] [URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-16'][16][/URL] A court will first determine if the act or practice was “in or affecting commerce” before determining if the act or practice was unfair or deceptive.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-17'][17][/URL] [SIZE=3][B]Unfair and Deceptive Definition[[URL='http://en.wikibooks.org/with-index.php?title=N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law&action=edit§ion=6']edit[/URL]][/B][/SIZE] A practice is unfair when it offends established public policy or when the act or practice is “immoral, unethical, oppressive, unscrupulous, or substantially injurious to consumers.”[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-18'][18][/URL] A party is guilty of an unfair act or practice when it engages in conduct which amounts to an inequitable assertion of its power or position.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-19'][19][/URL] [URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-20'][20][/URL] For an act or practice to be deceptive it must have “the capacity or tendency to deceive” but proof of actual deception is not required.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-21'][21][/URL] [URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-22'][22][/URL] Deliberate acts of deceit or bad faith do not have to be shown, rather, the claimant must demonstrate that the act or practice possessed the tendency and capacity to mislead or created the likelihood of deception.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-23'][23][/URL] Additionally, it is not required that the claimant actually relies on the deception in order to prevail; actual reliance is not a factor to be considered.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-24'][24][/URL] While bad faith is not required to prevail under the statute, good faith will still not be a defense.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-25'][25][/URL] Because an act or practice still has the capacity to deceive, regardless of the presence or absence of good faith on the part of the offending party, the intent of the actor is irrelevant.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-26'][26][/URL] [URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-27'][27][/URL] Unfairness is a broader concept than, and includes the concept of, deceptiveness.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-28'][28][/URL] However, only one—either unfairness or deceptiveness—is required to bring the act or practice within the statute.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-29'][29][/URL] There is no requirement that the act or practice be both unfair and deceptive.[URL='http://en.wikibooks.org/wiki/N.C._Gen._Stat_%C2%A7_75-1.1:_Unfair_%26_Deceptive_Trade_Practices_Under_North_Carolina_Law#cite_note-30'][30][/URL] [/QUOTE]
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