Compare a draft consumer contract with the FTC Act unfairness test
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- For each term the lawyer marks, leave columns for the injury the file describes, whether a consumer could reasonably avoid it, and any benefit stated. Do not call a term unfair.
- What the lawyer must review
- 15 U.S.C. § 45(n) says the Commission has no authority to declare an act or practice unfair unless it causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and is not outweighed by countervailing benefits to consumers or to competition. Public policy may be considered with the other evidence and may not be the primary basis. There is no Australian unfair-contract-terms statute in this version. Section 45(a)(2) excepts banks and other named businesses from the Commission's section 5 authority. You apply the test. The tool only lines the term up against the questions.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.