Would this be considered consideration?

November 14, 2008 4:07 AM

Legal Filter: Was having a conversation with a friend about the old music clubs where one taped a penny to the application and got 10 cds in return with the obligation to buy more Cds later. If it wasn't explicitly expressed that one is paying one cent for the cds, could it be argued that the penny represents due consideration of the contract? And, if so, what would the obligation to buy more Cds be? Further consideration?
posted by FunGus to Law & Government (8 answers total)

"Consideration" under contract law is doing something, or agreeing to do something, or not doing something (or agreeing not to) that you have a right or power to do. So accepting ten free CDs and agreeing to buy more would be sufficient consideration. The penny was just a gimmick.

My favorite gimmick is the card that asks you to remove a small piece from one location and then stick it in a slot before mailing. Always struck me as some kind of rudimentary IQ test.
posted by megatherium at 4:37 AM on November 14, 2008

The penny might be considered a peppercorn.
posted by exogenous at 5:02 AM on November 14, 2008

Here's one man's adventure with a club.
posted by Science! at 5:18 AM on November 14, 2008

Seems like the penny and the obligation to buy more CDs is consideration in exchange for 10 CDs now.

As an aside, down with peppercorns; the penny is clearly just a tomtit.
posted by lockestockbarrel at 6:15 AM on November 14, 2008

I don't remember there actually being an obligation to buy the CDs, at least not at first. My roommate back in college got his 10 virtually-free CDs from a couple different places and immediately canceled before he had to pay. Of course, you can only do this once.
posted by cimbrog at 6:27 AM on November 14, 2008

Usually those cards had the fine print that read something like 'by sending this card back you agree to buy X CD's over the next Y years' - although the 'consideration' part sounds cute, in reality you're agreeing to a contract with that legal language attached.

I've fantasized about attaching my own legalese in places you wouldn't expect... 'By opening this door you agree to pay the owner of this establishment $100 (one hundred) US dollars for the goods and services he offers you...

OK, in all seriousness though - no one mails a penny anymore... The 'old' CD clubs are a part of the past like my old NES games... That doesn't mean I don't play them anymore... Are you considering mailing an old card from mid-1995 in to see if you actually get the CD's??
posted by chrisinseoul at 8:06 AM on November 14, 2008

This doesn't answer your question but I did send one in a long time ago and I waited and waited for the CDs to arrive and when they didn't I called them and asked them to cancel the order since it was taking too long. And then about a week or two later I received the CDs.
posted by eatcake at 8:54 AM on November 14, 2008

BMG Music Service still exists with the exact same model as when I first joined, with potentially the only difference being that I can opt out of my featured selection online, and despite never opting out, I never get sent a cd and/or billed for it. So I've been a member of it for, wow... 12 years now.
posted by artifarce at 10:46 AM on November 14, 2008