BUS 311
(Business Law 1 - Ashford)

Week 3

Assignment

(Vonage Contract)

Vonage Contract

Vonage telephone service is notorious for continuing to debit consumers accounts after the customer has terminated the telephone service. I had Vonage for 2 years, from 2006 to 2008. My husband had orders to a different Air Force base and I knew that I didn’t want the telephone service at our new base. I called to cancel and I was ensured that everything would be taken care of, that there was nothing further that I needed to do. I would be enacting “termination by performance”. “Complete and satisfactory performance of the terms of a contract will bring about termination.” (Liuzzo, 2013)

In order to have Vonage, you had to sign up for auto pay. This allowed the company to direct debit my account each month. After cancelling the phone service, a month goes by and I was billed again. I called the company and was told that it was a mistake and I would be refunded the amount I was incorrectly charged and would not receive any further charges. Also, they had no capability of direct depositing back into my account so it would be 6-8 weeks before I received a check in the mail refunding the money that I was overcharged. …show more content…
Couldn’t rebut because I didn’t have anything in writing. Said I didn’t give 30 day notice to cancel services and had to pay or else it would be reported on my credit.

Vonage’s ethical dilemma – Vonage was acting unethically. This wasn’t just morally wrong. They were taking people’s money and making it virtually impossible to cancel the service.

Yates, J. (2009, Dec 08). Customer quits phone service -- but charges keep coming. Chicago Tribune, pp. 31-1.31. Retrieved from