LPS5,
I've been doing a bit of research on another issue and have come across almost universal settlements of this type where the defendent neither admits of denies, and just pays and accepts restrictions on future activity. Your agument supporting these settlements are satisfying and I generally agree that the alternatives are not all that attractive. I can think of numerous cases where tials have resulted in outrageous awards far in excess of resonable compensation or penalty, most of which are eventually overturned or never paid anyway.
Then again, I'm not exactly sure what the basis is for this case. Salespeople not actually believing in a product they're being paid to sell?
This, however, I think is another matter. When I go to buy the used car, I know I am dealing with somebody who makes his living from the sale. I have reason to think the product being represented is being represented in the best possible light, but I still expect a warranty and recourse if the product does not live up to what was being represented. I would never buy a used car "as-is".
The "salespeople" at Merrill Lynch, and other firms disavow that title. Instead you get a stuff like this:
Start With A Financial Professional
Merrill Lynch Financial Consultants are highly trained to help you achieve your
personal financial goals. They are skilled professionals who can work with you to
develop sound investment strategies suited to your individual needs. When you
combine the expertise of a Merrill Lynch Financial Consultant with the capabilities of
Merrill Lynch OnLine - our online service that provides 24-hour access to your
portfolio - you form a uniquely effective partnership.
and services like this:
Get Research, News & Real-time Quotes
Merrill Lynch OnLine provides research on any company Merrill Lynch follows,
including fundamental research information on equities, investment opinion and
earnings estimate changes, investment overviews, and our weekly "Focus 1" stock
selections. Focus 1 stocks represent timely investment values chosen from Merrill
Lynch's BUY (1) rated stocks. Each weekly selection will consider Merrill Lynch's
current economic, investment strategy, and market analysis or be based on
unusual fundamental and/or investment developments.
And we all know about the Chinese wall between the various segments of the firm.
If we want to put this kind of promotion on the same level as other salespeople and sales activities, then I want the same warranty I get with other products I buy. How about a 90-day warranty that says "if you take my advice and you lose money we will cover all your losses for 90 days", or maybe even the recourse you have with any other sales deal you are solicited with that permits you to get out of any contract within three days at no cost and no penalty. Maybe when the broker calls with the next hot stock I can tell him to go ahead and buy it, and if it's up in three days I'll send him the money. If not he can keep it himself. <ggg>
Dan |
