They all face racism in the ‘gray areas’ of workplace culture
by Adia Harvey Wingfield, Arts & Sciences at Washington University in St. Louis
American workplaces talk a lot about diversity these days. In fact, you’d have a hard time finding a company that says it doesn’t value the principle. But despite this – and despite the multibillion-dollar diversity industry – Black workers continue to face significant hiring discrimination, stall out at middle management levels and remain underrepresented in leadership roles.
As a sociologist, I wanted to understand why this is. So I spent more than 10 years interviewing over 200 Black workers in a variety of roles – from the gig economy to the C-suite. I found that many of the problems they face come down to organizational culture. Too often, companies elevate diversity as a concept but overlook the internal processes that disadvantage Black workers.
Take “Constance,” for example – not her real name – who is a Black female chemical engineering professor at a major research university. Her university proclaims its commitment to diversity and inclusion, with several offices and initiatives dedicated to this goal.
Yet she told me that most leaders at her school are uncomfortable trying to achieve racial diversity. They’d rather be “colorblind” – that is, they’d rather not acknowledge or address racial disparities or the institutional rules and norms that perpetuate them. So their attempts to pursue diversity translate into attempts to hire more women faculty but not more Black faculty.
This isn’t surprising, as women generally are underrepresented in STEM fields. But the emphasis on gender means that the racial issues Constance encounters as a Black woman – openly racist teaching evaluations, colleagues’ casual stereotyping, additional barriers to mentorship – go ignored.
“Kevin” offers another instructive example. He’s a Black man who works at an education nonprofit that aims to help kids – a laudable goal. His workplace touts its culture of collaboration and says that it demonstrates its commitment to diversity by supporting children from all backgrounds.
But in practice, Kevin found that the organization often shunned and patronized Black parents, treating them disrespectfully. And despite his employer’s stated support for diversity, Kevin says his efforts to highlight these problems usually went ignored.
And then there’s “Brian.” A film producer with extensive Hollywood experience, Brian was excited about taking a job with a major studio. He thought it would give him an opportunity to bring more films about the variety of Black experience to audiences. And since studio leaders talked a big game about innovation, creativity and original thinking, this seemed like a reasonable assumption.
But once he started in this role, Brian learned that the studio was dominated by a market-driven culture, which leaders used to justify not investing in films by and about Black people. Importantly, the same logic around Black filmmakers rarely seemed to apply to white ones, Brian said – those who directed flops were still given multiple chances to keep working. Pointing out this hypocrisy failed to change minds or practices, Brian found.
When a DEI statement isn’t enough
What do these three people, working in very different industries, have in common? They all work for employers that have a stated commitment to diversity – and an organizational culture that belies and even undermines it.
When these companies commit to diversity but fail to tackle racial diversity specifically, it becomes easy for workers like Constance, Kevin and Brian to find that the issues they experience get overlooked and that there’s no effective way to bring them forward. They get stuck in the gray areas.
Israel and the United States will find themselves on the wrong side of history because of the atrocities being committed in the Gaza Strip. As this is being written, the death toll in Gaza surpassed 5,700, and 2,300 of those were children, this number doesn't include those still buried under the rubble of buildings destroyed by missiles.
First, let me state that I am not anti-Semitic! Anyone who disagrees with anything that Israel does is labeled as such. I have long admired Jewish success or dominance in certain industries such as banking, entertainment, law, and science among others despite Jews being less than 1% (.2%) of the world's population. One of my favorite books is "The Secret War Against the Jews". I can't say for sure, but I believe it was that book that explained how Jewish males were required to read to Torah. The Jewish people had a literacy head start of about two thousand years, one of the reasons for their success.
Before going any further, it is important to understand the history of Palestine and Israel. Prior to WWII, the land now occupied by Israel was Palestine. The land was under British control and they allowed the UN to decide how to divide Palestinian land and give a majority of it to Israel. Below is a video that provides a brief history of the Israel-Palestine conflict.
Imagine the United States decides to allow some refugees to come to America and then comes to your home and divides a portion of your home for refugees and a smaller portion for you and your family. Then let's say the refugees decide they need more space and take an even larger portion of your home by force, preventing you from moving about freely, and deciding when and what you can bring home. That's what happened in Palestine.
I hadn't planned on commenting on this topic until I saw that the City of St. Louis was considering a proclamation of solidarity with Israel which in my opinion a proclamation approving Apartheid and Genocide!
It was bad enough that President Bidden pledged U.S. solidarity and weapons support to Israel after it had committed war crimes by targeting civilians, but the fact that St. Louis was blindly jumping on the bandwagon was the final straw.
Last year, Amnesty International called Israel's Apartheid, "a cruel system of domination and a crime against humanity". Two years ago, Human Rights Watch, commented about Israel's crimes of Apartheid and persecution. The United Nations recently expressed concerns about Israel committing the crimes of ethnic cleansing and genocide.
During a 2013 speech in Jerusalem, President Obama counseled Israelis to "look at the world through" the eyes of Palestinians and recognize that "Neither occupation nor expulsion is the answer – just as Israelis built a state in their homeland, Palestinians have a right to be a free people in their own. Obama's speech below is set to start at 31 minutes and 40 seconds of the video where he talks about Palestine, however, feel free to watch the entire video.
The Palestinian oppression issue is so clear that hundreds of Jewish protestors in D.C. wearing T-shirts with the slogan, "not in our name", demanded that Congress pass a cease-fire resolution in the Israel-Gaza war amid an intensifying humanitarian crisis. They stated they didn't want to see atrocities committed against Palestinians in their name. Award-winning Israeli journalist and author Gideon Levy, whose recent column for Haaretz states the obvious in the headline “Israel Can’t Imprison Two Million Gazans Without Paying a Cruel Price.”
I don't condone Hamas' surprise attack on October 7th. Peaceful resolutions are always preferred, but as I have stated, "It's foolish to let your oppressor tell you that you should forget about the oppression that they inflicted upon you". It's equally foolish for your oppressor to dictate how you should respond to that oppression.
Remember that Nelson Mandela and the African National Congress (ANC) were considered terrorists. Mandela was not removed from the U.S. Terror Watch List until 2008. The oppressor sees a terrorist when the oppressed see a freedom fighter!
"A freedom fighter learns the hard way that it is the oppressor who defines the nature of the struggle, and the oppressed is often left no recourse but to use methods that mirror those of the oppressor. At a point, one can only fight fire with fire." – From Mandela's book, "Long Walk to Freedom"
As the conflicts between Israel and Palestine and Russia and Ukraine continue, remember, "War is a Racket", there is no greater profit generator than war. Remember what President Eisenhower said before leaving office, "Beware of the Military Industrial Complex". Those who make weapons and profit off conflict don't want peace, they want to sell more guns, bombs, ammo, planes, tanks, and other machinery of war.
The month before Kim Gardner was sworn in, I published an article that made the following prediction: "Make no mistake, if Ms. Gardner proves to be a fair prosecutor, there will certainly be those that will attempt to distort her statements, vilify her actions and generally discredit her. There is a private prison system that stands to lose millions of dollars under a non-oppressive system."
The oppression of African-Americans is big business. Police officers often earn six figures annually, judges, prison food service, prison guards, probation officers, tech companies that supply ankle monitoring systems, and a multitude of others make their living and profits because of the continuing oppression of others. Take away the oppression and their income is taken away. Oppression and racism are big business, and always have been!
Article by Jeremy Kohler
After the 2014 fatal police shooting of Michael Brown in Ferguson, Missouri, and the months of protests that followed, the city of St. Louis was forced to reckon with its Black residents’ longstanding distrust of its police and courts.
Kim Gardner emerged as a voice for change. A lifelong resident of St. Louis, she had diverse professional experiences, having worked as a funeral director, a nurse, a lawyer, and a state legislator. When campaigning for circuit attorney, the city’s top prosecutor, she focused on the disproportionate frequency of arrests and police officers using force against St. Louis’ Black community.
Kim Gardner in 2022, when she was the St. Louis circuit attorney
“We need to change decades of old practices that left many in our community distrustful of the criminal justice system as a whole,” she told The St. Louis American, the city’s Black newspaper, just days before her decisive primary victory in August 2016 that all but sealed her general election win.
In the last decade, prosecutors in other major American cities also campaigned on promises of systemic reform: Kim Foxx in Chicago, Larry Krasner in Philadelphia, and Chesa Boudin in San Francisco.
Yet, much like Gardner, these prosecutors have faced resistance from the police and the unions that represent rank-and-file officers. They’ve been accused of being soft on crime and have even been met with political maneuvers aimed at derailing their initiatives. Several have been targeted by efforts to remove them from office or pare away their powers.
Boudin lost a recall vote and was removed in June 2022. And Krasner, criticized for his reduced emphasis on prosecuting minor crimes, was impeached by the state legislature in November, although a state court threw out the result.
In Florida, Gov. Ron DeSantis has removed elected prosecutors in Tampa and Orlando. He suspended Hillsborough County State Attorney Andrew Warren over Warren’s refusal to prosecute offenses related to abortion and gender-related health care. He suspended the state attorney for Orange and Osceola counties, Monique Worrell, because he said she wasn’t tough enough on some serious offenses.
Monique Worrell speaks at a press conference after Florida Gov. Ron DeSantis suspended her from her job as a state attorney
Georgia recently became the first state to establish a commission with the authority to discipline and even remove local elected prosecutors. Republican Gov. Brian Kemp framed the law as a way to check “far-left prosecutors.”
Gardner, who was reelected in 2020, stepped down in May of 2023 while facing both a lawsuit from the state attorney general that sought her removal and a separate attempt by the Republican-led legislature to curtail her authority. Gardner’s mismanagement of her office played a significant role in her downfall. Reform-minded lawyers who she personally hired had departed. And while judges fumed about prosecutors failing to show up for court, Gardner was moonlighting as a nursing student.
Though other prosecutors faced various challenges, there are no widely known instances like that of retired detective Roger Murphey in St. Louis, who has refused to testify in at least nine murder cases and hasn’t received any departmental discipline.
“For every progressive prosecutor who’s managed to stick it out, there’s one who’s either been recalled or driven out,” said Lara Bazelon, a University of San Francisco law school professor who volunteered on Boudin’s campaign and serves as chair of the commission he created to review inmates’ claims of innocence. “So it’s a real mix of success and cautionary tales.”
She added: “If the police are against you, or literally out to get you, you’re probably not going to be able to last in that job.”
Foxx, elected in 2016 and reelected in 2020, announced in April that she will not seek a third term next year, though she said it was not because of resistance from the police. In an interview, Foxx said that even before she took office, the Chicago police union felt threatened by her assertion that Black lives matter and that the criminal justice system could be more fair, particularly to communities of color.
Cook County State’s Attorney Kim Foxx announces that she will not seek reelection.
It was a signal, she said, “that I was not one of them.”
“The reality is we were offering something very different to what was traditionally viewed as the law-and-order approach to prosecution,” Foxx said. “I think it was surprising to folks that prosecutors could be elected addressing these issues.”
R. Michael Cassidy, a law professor at Boston College and an expert in prosecutorial ethics, said the Ferguson unrest emphasized the need for change in how police and prosecutors work. He said some prosecutors have failed to manage their relationships with police; prosecutors depend on the officers to bring them cases and to testify in court, but they must conduct oversight of the police as well.
Foxx pushed back against any assertion that she didn’t manage her relationship with police. She pointed to a popular Chicago police blog that often refers to her as “Crimesha” — “a play on the word ‘crime’ and what I believe to be a racist insinuation about me being Black with the name ‘-esha.’” The blog has also sexualized her last name by adding a third X and has insinuated that members of her family are connected to gangs.
“From the moment we came into office, we reached out to our partners in law enforcement, and what we saw was there was a segment of them who were never going to be satisfied with me in this role because I said ‘Black lives matter,’ because I said ‘We need police accountability,’ because I said that we had a criminal justice system that overly relied on incarceration that targeted Black and brown communities,” she said.
She said that she, Gardner, and other prosecutors “have been faced with an unprecedented level of hate and vitriol” from the police.
“That,” she said, “is the story.”
Chicago Fraternal Order of Police President John Catanzara and other union officials did not respond to requests for comment. But Catanzara told the Chicago Sun-Times in 2020 that the union’s complaints about Foxx were based on her job performance. He said she was a “social activist in an elected law enforcement position” who was unwilling to “faithfully do her job.”
The local police union organized a protest calling for the removal of Cook County State’s Attorney Kim Foxx in Chicago in 2019.
But as property crime rates climbed in San Francisco, Boudin came under increased scrutiny.
Cassidy said Boudin and other like-minded prosecutors have been scapegoated for isolated incidents or temporary spikes in crime statistics, as if they alone are responsible. In some cities, that has swung public opinion against them.
Chesa Boudin, during his time as San Francisco’s district attorney
Boudin said the claims were unfair and largely the product of police resistance to his reforms.
“We’ve seen, on body-worn camera footage, police officers telling victims there’s nothing they can do and, ‘Don’t forget to vote in the upcoming recall election,’” Boudin said in an interview.
Boudin said he and other local prosecutors have found “there is absolutely zero accountability for these officers who engage in explicitly political acts of sabotage or dereliction of duty.”
A spokesperson for the San Francisco police union declined to comment.
Some prosecutors have held onto their positions despite challenges to their power. In November, veteran public defender Mary Moriarty was elected county attorney for the jurisdiction that includes Minneapolis in the first election since the death there of George Floyd. The same night, Dallas District Attorney John Creuzot was reelected by a nearly 20-point margin in spite of calls by a police union for his ouster over his plan not to prosecute certain low-level offenses.
In August 2022, Sarah George, the incumbent state’s attorney in Vermont’s Chittenden County, which includes Burlington, secured her seat with a 20-point victory in the Democratic primary over Ted Kenney, a challenger backed by the police.
George had introduced a variety of reforms, including eliminating cash bail and declining to prosecute cases where evidence was obtained during noncriminal traffic stops, like those for broken taillights. The Burlington police union called her actions “disastrous” and Kenney argued that the approach made streets less safe.
George, too, has seen police body camera video of officers blaming her for crime. In one video, which she provided to ProPublica, the Riverfront Times and NPR, an officer from a suburban police department tells a couple that officers can’t do anything about a crack house in their neighborhood. He then implores them to vote for Kenney because of George’s “super-progressive, soft-on-crime approach where we arrest the same people daily and they get out the same day.”
George said that, with some crime investigations, the police are “not really doing the work that we need to do on the case, and then blaming us for the case not being filed.”
The Burlington police union declined to comment. The chiefs of police in Burlington and Winooski, the suburb where the video was taken, did not respond to messages seeking comment.
Gardner, too, often faced criticism from police for her reluctance to prosecute cases based on arrests alone. In one notable instance in 2019, she dropped child-endangerment charges against two daycare workers who were captured on video as they appeared to encourage toddlers to box using toy Incredible Hulk fists.
The police union called for her ouster, writing on Facebook: “The first rule of toddler fight club is … that you prosecute the sadistic promoters of toddler fight club.”
In comments made before her resignation, Gardner noted that she had been careful not to file criminal charges in cases where she did not feel there was enough evidence. “What they want me to do is make it look like this job is easy,” she said. “We can’t make things fit and people don’t like that. That’s not what justice is about.”
Richard Rosenfeld, a professor emeritus of criminology at the University of Missouri, St. Louis, was one of several researchers who pooled data from 65 major cities and found “no evidence to support the claim that progressive prosecutors were responsible for the increase in homicide during the pandemic or before it.”
Indeed, Chicago’s murder rate fell during Foxx’s first years in office, rose during the first years of the pandemic and has been falling this year, city crime statistics show. Philadelphia’s murder rate was in steep decline this year after a precipitous rise that started in 2020. And most categories of crime were in retreat in St. Louis at the time Gardner resigned, while violent crime was up in San Francisco a year after Boudin’s exit, according to statistics.
Acknowledging that the St. Louis police commonly blamed Gardner for crime trends, Rosenfeld, a veteran observer of policing in St. Louis, said, “Case not proved, is what I would argue there.”
Republished with permission from Propublica under license.
My friend "G" helped her daughter purchase a used vehicle from Pappas Toyota in St. Peters, MO, but now suspects the dealer committed fraud. Although "G" gave me permission to tell her story as a teachable moment; I'm not using "G's" name or her daughter's because "G" is a law enforcement officer.
These teachable moments are offered to provide our readers with real-life case situations that provide facts and analysis and possible remedies for common legal situations.
Facts and Background
On Monday, February 20, 2023, "G" sent her 19-year-old daughter, "T", to Pappas Toyota to test drive a 2013 Nissan Pathfinder that "G" saw online. "G" was unable to go with her daughter because "G" was working an extreme amount of overtime at that point. "G," asked me to accompany her daughter because "T" was nervous to go by herself.
After the test drive, "T" and I sat down with the salesperson to discuss preliminaries, and after several phone calls back and forth to "G", "G" took over negotiations with the salesperson over the phone. "G" was assured over the phone by the salesperson that the Pathfinder had no known issues, had gone through an extensive vehicle inspection process, had been state inspected, was a solid vehicle, and should provide reliable and trouble-free transportation for some time. In fact, the dealer stayed fairly firm on the price because the vehicle was in exceptional condition. The Pathfinder was purchased on February 24th.
On or about March 27th, Pappas was called because the Pathfinder's engine light came on and the vehicle was shaking when driving 40 mph or higher. An appointment was set for April 4th, Pappas performed a diagnostic test and replaced the "Plenum Gasket, Ignition Coil, and spark plugs". Pappas assured "G" and "T" that this would solve the problem and they spent $726 for that service. A few days later, the engine light came back on and when "T" called Pappas to report it, the service department told her there was no problem and that the engine light just needed to be reset. Pappas told "T" to look in the owner's manual for instructions on how to reset the light.
On July 12th, the Pathfinder stalled on Halls Ferry near Lindbergh and had to be towed about two blocks to Ronsick Auto Care. They performed a diagnosis on July 13th and determined that the entire Catalytic Converter System had failed. They further explained that the system includes three Catalytic converters and that it takes a substantial amount of time for the entire system to fail. Since the system includes three catalytic converters, the estimate to replace including labor was over $5,000. When "G" explained that they had just purchased the vehicle in February, Ronsick's professional opinion was that the vehicle was sold with a bad catalytic converter system.
On Thursday, July 13th, "T", phoned the salesperson at Pappas Toyota who sold the vehicle and explained the situation, and asked if Pappas would fix or allow the Pathfinder to be exchanged for another vehicle but was told Pappas couldn't do anything since she hadn't purchased an extended warranty.
On Friday, July 14th, a letter was faxed to Pappas, detailing the information above and that "G" and "T" believed the Pathfinder's conditions were preexisting prior to their purchase. Fraud was suspected because as automotive experts, Pappas knew or should have known the actual condition of the Pathfinder but did not disclose and maybe even illegally reset the engine check light to conceal the defects.
G & T chose to purchase from Pappas because they believe it to be a reputable and honest business and they were trying to avoid running into this sort of situation from a disreputable used car dealer. They demanded that Pappas make them whole and repair the Pathfinder at no cost per the Missouri Merchandizing Practices Act RSMo 407.020 et al. The following was stated in the letter to Pappas:
"This is a good faith attempt to resolve this issue, however, If we do not hear from Pappas by 2 pm today, Friday, July 14th, we will take the following actions.
My daughter, several of her friends, and family members are preparing an informational picket to take place on the public areas outside of Pappas Toyota.
A copy of this letter and a short press release will be sent to local media outlets.
If those activities produce no results, we will file a small claims complaint with St. Charles Circuit Court and let a judge decide if Pappas should have known about the defects prior to the sale."
Pappas Toyota Non-Responsive
G received no response from Pappas Toyota, since they didn't attempt to contact her, she filed complaints with the Missouri Attorney General's Office and several consumer complaint sites Friday evening. Because of the weather forecast, T canceled a planned information picket for Saturday, July 15th, however, she may reschedule later.
G is now researching and organizing documents and plans to file a small claims suit against Pappas Toyota. This page will be updated when additional information about the outcome is available.
Fraud and Lawsuit Analysis
In Missouri courts, small claims are limited to $5,000, see Missouri Rules for Small Claims Court and the Missouri Small Claims Court Handbook (PDF). According to the fee schedule for St. Charles Circuit Court, the filing fee will be $20.50. Because their claim is potentially greater than $5,000, G & T are also considering filing a standard civil lawsuit. RSMO 402.025 allows for possible reimbursement of attorney fees and punitive damages. If a civil vs small claims suit is filled, G & T will seek to recover the $729 spent in April for repairs, the cost to replace the catalytic converter system, lost time from work, car rental reimbursement, any other fees and cost associated with the action including attorney fees and punitive damages.
Missouri Revised Statute 400.2-314 provides an implied warranty of merchantability and the Missouri Supreme Court ruled in Herbert v. Harl, 757 SW 2d 585 that the statute applies to car dealers. A “warranty of merchantability” means the dealer promises the car will do what it's supposed to do: it will run. However, there are exclusions under RSMO 400.2-316, if the sales contract contains the term "as-is" the warranty of merchantability does not apply.
Pappas Toyota will most likely deny liability by stating that the vehicle was sold "as-is", however, that argument does not exempt them from liability under Missouri Merchandizing Practices Act RSMo 407.020 et al.
The Federal Trade Commission’s (FTC) Used Car Rule requires dealers to display a Buyers Guide in every used car they offer for sale and to give it to buyers after the sale. Pappas Toyota did not display a Buyers Guide when T and I test-drove the vehicle, however, they did have her sign one at the time of sale. Before and immediately after the test drive, I took several photos of the entire vehicle to record the condition and show to G, after reviewing those photos, I noticed there was no buyer's guide.
2013 Pathfinder on February 20, 2023, immediately after the test drive, T is on the left in the white coat.
In the photo above, there is a sign in the building's window advertising Pappas Premium, which is a peace of mind pledge. The following statement appears on the PappasToyota.com Pappas Premium page, "A pre-owned vehicle from Pappas Toyota isn’t an ordinary used car. After passing a rigorous inspection and reconditioning process, it’s added to our lot with Pappas Premium, a nationwide 2-Year/100,000-Mile Limited Powertrain Warranty, with 24-Hour Roadside Assistance, One Year of Tire Hazard Protection, and more!" There is no disclaimer stating that some vehicles are excluded. Any reasonable person reading this statement would assume that this applies to all used vehicles sold at Pappas.
This assurance is one of the reasons G sent her daughter to Pappas. At the time of publication, T's 2013 Nissan Pathfinder according to CarFax has a retail value of $10,220, a private party value of $7,700, and a trade-in value of $4,400. Let's assume Pappas purchased the Pathfinder for around $4,700. The reason a customer would then respond to Pappas' advertised selling price of $10,700 is that it is expected that Pappas inspected and reconditioned the vehicle as stated in the Pappas Premium pledge. Otherwise, customers could simply purchase the vehicle from a private seller and save thousands of dollars.
Under the Missouri Merchandising Practices Act, false pretense, false promise, misrepresentation, unfair practice, or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerce is an unlawful act. Pappas' salesperson mentioned how their used vehicles undergo an extensive inspection which matches with the Pappas Premium statement of a "rigorous inspection and reconditioning". A dealer has an affirmative duty to tell you certain “material facts” about a vehicle, whether or not you ask for them. This includes disclosing if a vehicle was a “lemon law” buyback, a prior rental, a prior salvage, or in an accident requiring major repair work such as frame or suspension damage.
Pappas Toyota is the expert here. It is reasonable to expect that if the vehicle needed to have the "Plenum Gasket, Ignition Coil, and spark plugs replaced, the "rigorous inspection" should have identified those issues prior to the sale. It is also reasonable that Pappas should have known that the catalytic converter system was bad. How many of the three catalytic converters have to fail before the engine light comes on?
According to Automotive Diagnostic Repair Help: "As a rule, when converter efficiency drops below 90 to 95 percent, it will set off a catalyst efficiency code. A vehicle with an illuminated Check Engine Light and ANY trouble codes will NOT pass an emissions check. A fouled converter may or may not cause an increase in backpressure, but eventually, it might if carbon starts to build in the honeycomb restricting the passageways. The important point to remember here is that converters don't just foul or plug up for no good reason. There is always an underlying cause which must be diagnosed and corrected before the problem can be eliminated. Identifying a plugged or fouled catalytic converter is only half the fix. Why? Because replacing a bad converter will only solve the current problem temporarily. If the underlying cause of the converter failure is not also diagnosed and repaired, sooner or later the new converter will likely suffer the same fate."
According to RepairSmith.com and several other sites, a vehicle normally can be driven indefinitely with a bad catalytic converter. A clogged catalytic converter can only prohibit you from driving your automobile in the most severe circumstances. According to PerformanceMuffler.net, "A failing car’s catalytic converter will create a significant backpressure that lowers your car’s engine performance. Whenever this happens, you will notice your car shaking frequently".
On February 15th, the date that Pappas Toyota performed the emissions inspection, the vehicle mileage was 143,287. On April 4th when Pappas performed the repairs, the mileage was 145,283. The mileage recorded by Ronsick on July 12 was 149,069. The Pathfinder was driven less than four thousand miles since Pappas supposedly took care of the vehicle’s issues.
When a small claims lawsuit is filed, the plaintiff (the person suing), bears the burden of proof and must convince a judge. This requires the plaintiff to put forth evidence in the form of witness testimony, documents, or objects. There are four elements that need to be proven to win a Missouri Merchandizing Practices Act suit.
(1) the plaintiff purchased, or attempted to purchase, merchandise (which includes services) from a defendant in the state of Missouri;
(2) the plaintiff’s purchase of, or attempt to purchase, merchandise (or services) was for personal, family, or household purposes;
(3) the plaintiff suffered an ascertainable loss of money or property; and
(4) the plaintiff’s ascertainable loss was a result of an action by a defendant that has been declared unlawful by § 407.020 RSMo.
In all likelihood, the condition of the plenum gasket, ignition coil, and spark plugs would have resulted in a check engine light prior to the sale. Additionally, since the catalytic converter was so bad that it failed just three months later indicates there were issues for a while even before G& T purchased it. Remember, even the mechanic that the car was towed to agrees that this was a preexisting condition, so why didn't Pappas catch this, was it fraud or negligence? Either way, it's a material fact that Pappas should have known that wasn't disclosed. However, a vehicle with a catalytic converter so bad that it causes the car to stall shouldn't have passed inspection in the first place which increases the likelihood fraud was involved. It's highly probable a judge will agree.
If you are a former or current employee of Pappas Toyota, a customer, or someone who has helpful information concerning this case contact us.
G contacted the St. Charles Circuit Court about filing the small claims suit against Pappas Toyota and was told that she must first send a certified demand letter to the registered agent. She visited the Missouri Secretary of State's office and search their records of business listings and discovered that Pappas Toyota is owned by North Motors Inc. and that Michael Pappas become the registered agent in March 2023, his father Thomas Pappas (the former registered agent), passed away the previous month. G sent her demand letter on Friday, July 21st.
On Monday, July 24th, G received an email from the Attorney General which included Pappas Toyota's response prepared by their attorney including three attached documents; "Retail buyer's order, buyer's guide, and a document declining extended service contract. Pappas' attorney as expected cited the sale as-is but also asserted the parties agreed to arbitration. Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
The irony here is that Section (a) of the attached Pappas arbitration clause states; "The Federal Arbitration Act, not state law, shall govern the arbitration process and the question of whether a claim is subject to arbitration. The customer, however, retains the right to take any claim, controversy or dispute that qualifies to small claims court rather than arbitration." The Pappas Toyota arbitration clause itself allows for issues to be taken to small claims court instead of arbitration. The important lesson is to carefully read any document provided by the opposition or their attorney.
An arbitration clause in a contract is usually binding, however, the Missouri Supreme Court has ruled that such clauses cannot waive the protection provided by the Missouri Merchandising Practices Act (MMP). See Shaffer v. Royal Gate Dodge where the dealer tried to compel arbitration but the court ruled the arbitration clause unenforceable.
In the case of Huch v. Charter Communications, the Missouri Supreme Court stated the following often while citing other relevant cases:
"the public policy involved in Chapter 407 is so strong that parties will not be allowed to waive its benefits."
In short, Chapter 407[, the MPA,] is designed to regulate the marketplace to the advantage of those traditionally thought to have unequal bargaining power as well as those who may fall victim to unfair business practices. Having enacted paternalistic legislation designed to protect those that could not otherwise protect themselves, the Missouri legislature would not want the protections of Chapter 407 to be waived by those deemed in need of protection. Furthermore, the very fact that this legislation is paternalistic in nature indicates that it is fundamental policy: "a fundamental policy may be embodied in a statute which … is designed to protect a person against the oppressive use of superior bargaining power."
Likewise, in Whitney v. Alltel Communications, Inc., a contract provision requiring arbitration was found to be unconscionable because giving it effect would deny protections afforded by the merchandising practices act. 173 S.W.3d 300, 314 (Mo. App.2005). The court held that to allow companies to avoid the consumer protections established in the act "would effectively strip consumers of the protections afforded to them under the Merchandising Practices Act and unfairly allow companies… to insulate themselves from the consumer protection laws of this State." Id. "This result would be unconscionable and in direct conflict with the legislature's declared public policy as evidenced by the Merchandising Practices Act and similar statutes."
Car dealers are required by the FTC to post a Buyers Guide before they display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. The Buyers Guide must be displayed prominently and conspicuously on or in a vehicle when a car is available for sale. This means it must be in plain view and both sides must be visible. You can hang the Guide from the rear-view mirror inside the car or on a side-view mirror outside the car. You also can place it under a windshield wiper. The Guide also can be attached to a side window. A Guide in a glove compartment, trunk, or under the seat is not conspicuous because it is not in plain sight. Since the vehicle did not have a visible buyer's guide when T and I test-drove the vehicle, that violation could also be considered an omission per the MMP.
G & T are both listed as purchasers, however, T was the only signer to the contract which contains the arbitration clause. G & T financed the vehicle at a bank that only G had an account with at the time. Even if the arbitration clause was valid, and was not barred from being invoked in cases involving the MMP, it could be argued that the clause does not apply to G since she never signed it but does have a protectable interest.
Michael Pappas
President North Motors Inc.
D.B.A. Pappas Toyota
10011 Spenser Road
St. Peters, MO 63376
Dear Mr. Pappas,
This letter serves as a formal demand for payment of $5000, the partial cost to repair the prior damage that Pappas Toyota, knew or should have known existed before our purchase. Our claim is based upon the Missouri Merchandizing Practices Act, RSMo 407.020 et al, which applies even when merchandise is sold as-is.
I helped my 19-year-old daughter T purchase a 2013 Nissan Pathfinder from Pappas Toyota on February 24, 2023. We live in Florissant, however, the primary reason for choosing your business was the Pappas Premium pledge on your website; https://www.pappastoyota.com/pappas-premium/.
Unfortunately, a month later, we were forced to pay Pappas $729 for repairs which included the Plenum Gasket, Ignition Coil, and spark plugs. Those items should have been detected from the "rigorous inspection" you claim to perform on all used vehicles before being added to your lot.
A few days later, the engine light came back on and when Taylor called Pappas to report it, the service department told her there was no problem and that the engine light just needed to be reset. Pappas told Taylor to look in the owner's manual for instructions on how to reset the light.
Three months later, the entire catalytic converter system failed and the estimated cost to replace is $5,285, I have included a copy of the repair estimate with this letter. A second mechanic we consulted said it was nearly impossible that an inspection wouldn't have caught those issues. Both mechanics concluded the conditions existed before our purchase.
For more complete information about this claim, see the self-help legal blog that picked up our story: https://court.rchp.com/is-pappas-toyota-engaging-in-unethical-car-dealer-practices/
We have previously tried to resolve this matter, my daughter T contacted your salesperson D on Thursday, July 13th, I sent a fax to your manager, A on Friday, July 14th at 636-xxx-xxxx, and I sent an email to you on Monday, July 17th at, mpappas@pappastoyota.com. We lodged a complaint with the Missouri Attorney General, the Better Business Bureau, and others, however, as of the date of this letter, we have not received any response.
If we do not receive a full payment of $5,000 by August 4, 2023, we will have no choice but to file a claim in St. Charles small claims court. In lieu of payment, if arrangements are made by July 27th, we will allow Pappas the option to replace the catalytic converter system at their cost and provide us with the full Pappas Premium coverage as we no longer feel confident about the vehicle's condition when sold.
Since our total claim exceeds $5,000:
$5,285 – estimated catalytic converter system replacement and related work
+ $729 – cost of prior repair April 4th
+ $112 – daughter lost wages
We reserve the right to file a standard civil case where we would seek full restitution including filing fees, attorney fees, tow charges, additional lost wages all other associated cost, and punitive damages.
This letter fulfills the St. Charles Circuit Court requirement of sending a certified letter to the registered agent of the business prior to filing suit. You have 10 days to respond after receipt of this letter to respond.
Pappas Toyota responded to the Missouri Attorney General's office, but no one has reached out directly to G about her complaints. G contacted the Toyota Corporation to alert them about the questionable practices of their franchisee. In reply to Pappas Toyota's attorney's response to the Missouri Attorney General about her complaint, G sent the following:
Re: Complaint No. CC-2023-07-00xxx
Dear Ms. W:
After careful review of the Pappas response and exhibits, I'd like to point out the flaws and oversight. I've been a Deputy Juvenile Officer (DJO) in the City of St. Louis since 1996 and my deceased husband, M, was an attorney so I have some familiarity with the law.
Mr. K mistakenly stated our claims need to be arbitrated. Section 8(a) of Pappas Exhibit 1, states; "The Federal Arbitration Act, not state law, shall govern the arbitration process and the question of whether a claim is subject to arbitration. The customer, however, retains the right to take any claim, controversy or dispute that qualifies to small claims court rather than arbitration." Pappas' arbitration clause itself provides the authority to bypass arbitration and go to small claims court. However, the Missouri Supreme Court has ruled that such clauses cannot waive the protection provided by the Missouri Merchandising Practices Act (MMAP); see Shaffer v. Royal Gate Dodge, Inc., 300 SW 3d 556, where the dealer tried to compel arbitration but the court ruled the arbitration clause unenforceable.
Additionally, please note that both my name and my daughters' name appear as purchaser on Pappas Exhibit 1, however, only my daughter signed the agreement with the arbitration clause, therefore, I cannot be forced into arbitration. I would have preferred to accompany my daughter, however, I was working over 80 hours of overtime per pay period during that time leaving only a small window where we could both be present on February 24th. D, our Pappas salesperson, wasn't available during that window and informed me that I didn't need to be there to finalize the sale, but I was never informed about the arbitration clause or that the vehicle was sold as-is and not covered by the Pappas Premium pledge, Exhibit A. My negotiations with D were over the phone and by text and I didn't visit their location until after the deal was completed. The online advertisement for the Pathfinder did not mention it was as-is.
Car dealers are required by the FTC to post a Buyers Guide before they display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. I was sent photos, Exhibit B, of the vehicle before and after the test drive which clearly shows there was no Buyers Guide. Please note that Pappas Exhibit 2 may have been signed by my 19 year old daughter if they presented it, but the Buyer's Guide certainly does not contain my signature.
The MMPA is designed to regulate the market place to the advantage of those traditionally thought to have unequal bargaining power, as well as those who may fall victim to unfair business practices. The Missouri legislature enacted paternalistic legislation to protect those consumers that could not otherwise protect themselves, signifying it would not want the protection of chapter 407 to be waived by those deemed in need of protection. This very fact indicates that it is a fundamental policy embodied in a statute which is designed to protect persons against the “oppressive use of superior bargaining power.” Huch v. Charter Communications. Inc., 290 S.W.3d 721, 726 (Mo.banc 2009). Therefore, the fact that my daughter signed the Buyer Guide does not exempt Pappas Toyota from their pledge.
We raised fraud issues in our complaint, so the Pappas attorney's correspondence does not fully resolve this matter. We hope that the AG's office may provide assistance, however, we are fully prepared to file suit in St. Charles Circuit Court if it cannot. The secondary nature of our AG complaint was to notify this office of possible fraud and to prevent Pappas from making false statements on their website concerning the Pappas Premium and "rigorous inspections" and then using the "As-Is" sale, arbitration, and declining to purchase an extended service contract to bypass and insulate themselves from the consumer protection laws of this State.
I am attaching a copy of the Pappas Premium Pre-Owned Peace of Mind pledge from their website. Please note there is no disclaimer stating that some vehicles are not covered. This pledge would mislead any reasonable consumer into thinking all used vehicles sold by Pappas are covered. Several mechanics have explained that the vehicle we purchased shouldn't have passed a basic state inspection and that any sort of "rigorous inspection" certainly should have identified the issues we faced in March and then July.
The 2013 Nissan Pathfinder we purchased was advertised for $10,700 on the Pappas Toyota website. The price was negotiated down to $10,000, however, I refused to pay a $499 administrative fee. That fee was then subtracted from the sales price to equal the original $10,000 agreed upon. We were charged $759 in March for repairs, Exhibit C, and now face another $5,285 for the catalytic converter system, Exhibit D. The total of these repairs is more than 60 percent of the purchase price for a vehicle according to the, Pappas Pledge "is like no other used car". It is illegal for a car dealer to sell a vehicle with a failing emissions system.
As part of my investigation and research, I pulled the Pathfinder's CarFax Report, Exhibit E. Please note that spark plugs and the ignition system was serviced on 11-06-2019 and the Plenum gasket was replaced on 09-21-2021. Keep in mind that the Plenum gasket, ignition coil, and spark plugs were replaced in April 2023 by Pappas Toyota. The CarFax report states that Pappas performed an emission inspection on 2-8-2023, however, the actual inspection certificate is dated 2-15-2023, Exhibit F. Did the Pathfinder fail inspection on the 8th? Further indication the Pappas emission certificate might be fraudulent. The Pappas Toyota website states they are a 2022 CarFax Top-Rated Dealer. It's reasonable to expect they would use the CarFax report as a guide to look for possible issues.
According to WheelsJoint.com, the Nissan Pathfinder ignition coils are responsible for amplifying the relatively low battery voltage from 12V to a high voltage of tens of thousands of volts for the spark plugs. Driving a Pathfinder with bad ignition coils can damage the engine or the catalytic converter.
According to RepairPal.com, the Plenum Gasket, also known as the intake manifold gasket on a Nissan Pathfinder is designed to last the life of the vehicle, but often it will be replaced when doing related engine repairs in order to prevent problems with it down the road. YourMechanic.com states, " The principal concern with a leaking intake manifold gasket is potential damage to the engine, depending on where the leak is. …. If the leak involves coolant, it could lead to engine overheating damage or the coolant could contaminate the engine oil, which can damage the engine bearings. If there is an air leak to the cylinders, it can cause lean operation which could overheat the catalytic converter."
On 1-10-2023, Pappas Toyota performed recommended maintenance including changing tires and an oil change. They performed an emissions inspection on Feb. 8th or 15th, however, no other inspections are mentioned. A condition of our purchase was the touch ups of noticeable paint chips and scratches which is most likely the service that was performed on 2-21-2023.
Sections 407.020 and 407.025 provide four elements to a MMPA claim: (1) the use or employment of a “deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression or omission of any material fact,” (2) the unlawful act must occur in connection with the sale or advertisement of merchandise, (3) the unlawful act must result in an ascertainable loss of money or real or personal property, and (4) the loss must occur to a person who purchases or leases merchandise primarily for personal, family or household purposes.
The Pappas Premium pledge in our case is an obvious false promise, then the fact there was no Buyer's Guide which was a concealment, suppression, or omission of a material fact, a major repair one month after purchase and then the complete failure of the catalytic converter system three months later in consideration of the facts above by any reasonable standard satisfies an action under MMAP.
A quick scan of Pappas Toyota's BBB file tells me we're not their first victim, but hopefully, we'll be their last. Proof of intent can be shown by circumstantial evidence. See Rice v. Lammers, 65 S.W.2d 151 (Mo. App. 1933). And silence or concealment is actionable on a showing of the seller’s superior knowledge or the seller giving partial information. In Hess v. Chase Manhattan Bank, USA, NA, 220 SW 3d 758 the Court held that the admission or concealment of material facts under the MMPA required less proof than what was required to prove comparable elements of common law fraud.
As a DJO, sadly, I must enforce the law on children as young as 10 years old, sometimes for minor offenses as low as $10, often motivated by great need. Hopefully, your office will hold grown men to account for thousands of dollars stolen by fraud and motivated by great greed!
Sincerely,
G
Attached are the following:
Printout of the Pappas Premium Pledge from their website
experts on banking, public spending and education policy look at the impact of Biden’s plan
An estimated 20 million people will see their balances drop to zero. AP Photo/Evan Vucci
Editorial note:
The U.S. Department of Education says a simple federal student loan forgiveness application will be available by early October. There will be more details announced in the coming weeks. To be notified when the process has officially opened, sign up at the Department of Education subscription page. Borrowers must complete that application before Nov. 15 to receive relief before the latest payment pause extension ends on Dec. 31, 2022.
If borrowers don't apply for forgiveness by Nov. 15, 2022, they will have more than a year to still apply until Dec. 31, 2023. But their loans will enter repayment before they are forgiven if they wait beyond the Nov. 15 deadline.
How do I know if I am eligible for debt cancellation?
To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)
If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.
If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.
by Terri Friedline, University of Michigan; Dominique Baker, Southern Methodist University, and John W. Diamond, Rice University
President Joe Biden announced a program to provide student debt relief to millions of borrowers of federal loans. The plan would offer up to US$10,000 in forgiveness for people who earn less than $125,000 – $250,000 for couples – and up to $20,000 for Pell Grant recipients. Biden also extended the pause on repaying federal student loan debt through Dec. 31, 2022, and has proposed a cap on income that can be used to calculate how much borrowers repay through income-driven repayment.
We asked three experts to explain the decision and its impact.
Relief makes real difference but ignores structural issues
Terri Friedline, Associate Professor of Social Work, University of Michigan
The Biden administration’s plan is an important step that I believe will make a real difference in many people’s lives. The White House estimates that about 20 million of the nation’s roughly 43 million student debt holders will see their entire balance canceled.
Despite this considerable impact, the plan is still limited. I hope it’s just the beginning in much-needed policy conversations about debt and education in the United States.
For one thing, Biden’s plan cuts less than 20% of America’s $1.75 trillion student debt tab.
In addition, the income cap of $125,000 focuses on borrowers’ socioeconomic class while ignoring the roles structural racism and sexism play in terms of who borrows and how much. For example, Black women borrow about $38,000 on average to finance their education, compared with $30,000 for white men. And because interest on student loans quickly accumulates, most Black female borrowers still owe their original balance 20 years after enrolling in school. By comparison, most white borrowers have paid off their loans completely within that time period.
The Biden administration will have to do more if it aims to adequately address these and the many other remaining structural problems with debt and education.
Plan extends much-needed relief to Black borrowers
Dominique Baker, Assistant Professor of Education Policy, Southern Methodist University
When approximately 10,000 student loan borrowers had their private student loans randomly canceled from 2010 to 2017, researchers found that it ultimately enabled them to more easily move, change jobs and earn more money. The borrowers were also 11% less likely to default on credit cards or other loans.
I expect similar outcomes will flow from the Biden administration’s decision to cancel federal student loans. And the decision to cancel up to $20,000 for those who received Pell Grants means that even more relief may flow to borrowers who are Black.
From the standpoint of racial justice, I believe this additional relief for Black borrowers is necessary because of centuries ofsystemic inequities. Such inequities include accumulating education debt through “predatory inclusion,” a practice in which Black people are offered access to things like college or buying a house but on exploitative financial terms that have long-term negative effects.
Black student loan borrowers are also often the mostburdenedbystudentloandebt. As one example, Black bachelor’s degree earners are more likely to default on their student loans than white students who earn a bachelor’s degree – 21% versus 4%, respectively. Even more startling, Black bachelor’s degree recipients default at a higher rate than white students who leave college with no degree – 21% versus 18%, respectively.
The Biden administration also has proposed changes to the income-driven repayment plan, which should help future undergraduate borrowers by reducing the monthly percentage of discretionary income borrowers would pay from 10% to 5% and increasing what counts as nondiscretionary income. That means borrowers will have more money that will not be used to calculate the percentage they owe each month.
I’d argue there is still work to be done to create an affordable college education. But today was an excellent start.
While it will provide direct financial benefits for some people who currently owe money on federal student loans, I believe there will be another cost: higher inflation.
The upward pressure on inflation will result from increased spending by those who see their student debts reduced, as well as from the continuing moratorium on federal loan repayments. This higher demand for consumer goods – relative to a world without debt relief or a repayment moratorium – has the effect of driving up prices for current goods and services.
The Committee for a Responsible Federal Budget found that a similar though more modest version of debt forgiveness would lead to a measurable increase in spending on personal consumption, which would have the effect of driving up prices for all consumers. That was based on a plan to spend roughly $230 billion on debt forgiveness – at least $70 billion less than Biden’s plan.
Another side effect could be that Biden’s debt relief offers incentives to students entering or currently in college to take on additional debt in anticipation of future rounds of forgiveness. Economists call this moral hazard. Other research found that increases in student borrowing can result in bigger tuition increases.
Some research has pointed to positive economic outcomes for those who receive debt relief, such as less future indebtedness, greater job mobility, and higher salaries. But these effects are based on a full discharge of student debt and not an incremental reduction like the one Biden announced.
Ultimately, loan forgiveness – whatever its merits – will likely lead to larger federal deficits and higher inflation. While it benefits those with student loan debt, those benefits should be weighed against the costs it imposes on others and the economy.
Republished with permission under license from The Conversation.
On Apr. 4, 1968, Dr. Martin Luther King Jr. was assassinated in Memphis, Tennessee, while assisting striking sanitation workers.
Back then, over a half-century ago, the wholesale racial integration required by the 1964 Civil Rights Act was just beginning to chip away at discrimination in education, jobs, and public facilities. Black voters had only obtained legal protections two years earlier, and the 1968 Fair Housing Act was about to become law.
African-Americans were only beginning to move into neighborhoods, colleges, and careers once reserved for whites only.
How much has really improved for black people in the U.S. since 1968? Ted Eytan, CC BY-SA
I’m too young to remember those days. But hearing my parents talk about the late 1960s, it sounds in some ways like another world. Numerous African-Americans now hold positions of power, from mayor to governor to corporate chief executive – and, yes, once upon a time, president. The U.S. is a very different place than it was in 1968.
Or is it? As a scholar of minority politics, I know that while some things have improved markedly for Black Americans in the past 50-odd years, today we are still fighting many of the same battles as Dr. King did in his day.
That was then
The 1960s were tumultuous years indeed. During the long, hot summers from 1965 to 1968, American cities saw approximately 150 race riots and other uprisings. The protests were a sign of profound citizen anger about a nation that was, according to the National Advisory Commission on Civil Disorders, “moving toward two societies, one black, one white — separate and unequal.”
Economically, that was certainly true. In 1968, just 10% of white people lived below the poverty level, while nearly 34% of African-Americans did. Likewise, just 2.6% of white job-seekers were unemployed, compared to 6.7% of black job seekers.
Dismantling ‘Resurrection City’ in 1968.AP Photo/Bob Daugherty
A year before his death, Dr. King and others began organizing a Poor People’s Campaign to “dramatize the plight of America’s poor of all races and make very clear that they are sick and tired of waiting for a better life.”
Ralph Abernathy, an African-American minister, led the way in his fallen friend’s place.
“We come with an appeal to open the doors of America to the almost 50 million Americans who have not been given a fair share of America’s wealth and opportunity,” Abernathy said, “and we will stay until we get it.”
This is now
So, how far have Black people progressed since 1968? Have we gotten our fair share yet? Those questions have been on my mind a lot this month.
Financial security, too, still differs dramatically by race. In 2018 black households earned $57.30 for every $100 in income earned by white families. And for every $100 in white family wealth, black families held just $5.04.
Another troubling aspect about black social progress – or the lack thereof – is how many black families are headed by single women. In the 1960s, unmarried women were the main breadwinners for 20% of households. In recent years, the percentage has risen as high as 72%.
Black Americans today are also more dependent on government aid than they were in 1968. About 40% of African-Americans are poor enough to qualify for welfare, housing assistance and other government programs that offer modest support to families living under the poverty line.
Legally, African-Americans may live in any community they want – and from Beverly Hills to the Upper East Side, they can and do.
But why aren’t those gains deeper and more widespread?
Some prominent thinkers – including the award-winning writer Ta-Nehisi Coates and “The New Jim Crow” author Michelle Alexander – put the onus on institutional racism. Coates argues, among other things, that racism has so held back African-Americans throughout history that we deserve reparations, resurfacing a claim with a long history in Black activism.
Alexander, for her part, has famously said that racial profiling and the mass incarceration of African-Americans are just modern-day forms of the legal, institutionalized racism that once ruled across the American South.
Depending on who you ask, then, Black people aren’t much better off than in 1968 because either there’s not enough government help or there’s too much.
In 1963, 250,000 people marched on Washington to demand equal rights. By 1968, laws had changed. But social progress has since stalled.United States Information Agency
What would MLK do?
I don’t have to wonder what Dr. King would recommend. He believed in institutional racism.
In 1968, King and the Southern Christian Leadership Council sought to tackle inequality with the Economic Bill of Rights. This was not a legislative proposal, per se, but a moral vision of a just America where all citizens had educational opportunities, a home, “access to land,” “a meaningful job at a living wage” and “a secure and adequate income.”
To achieve that, King wrote, the U.S. government should create an initiative to “abolish unemployment,” by developing incentives to increase the number of jobs for black Americans. He also recommended, “another program to supplement the income of those whose earnings are below the poverty level.”
Those ideas were revolutionary in 1968. Today, they seem prescient. King’s notion that all citizens need a living wage portends the universal basic income concept now gaining traction worldwide.
King’s rhetoric and ideology are also obvious influences on Sen. Bernie Sanders, who in the 2016 and 2020 presidential primaries has advocated equality for all people, economic incentives for working families, improved schools, greater access to higher education, and for anti-poverty initiatives.
Progress has been made. Just not as much as many of us would like.
To put it in Dr. King’s words, “Lord, we ain’t what we oughta be. We ain’t what we want to be. We ain’t what we gonna be. But, thank God, we ain’t what we was.”
A recent Cracker Barrel experience is being used as a teachable moment, which will include legal analysis to help determine if the restaurant's actions were illegal. This site provides free self-help legal information.
I visited Cracker Barrel located at 10915 New Halls Ferry Road, Ferguson, MO 63136, on Monday to help celebrate my son's birthday. I ordered meatloaf listed in the "Weekday Lunch Features" section for $5.99. Since my 92-year-old father was unable to attend, I placed a to-go order of the meatloaf for him.
When I received my bill, the meatloaf orders were listed for $6.99 each instead of the $5.99 menu price. I pointed out the mistake to the server who mentioned that the price had changed but that it wasn't reflected on the menu. The server had mentioned earlier that it was his first time working as a server. We left a tip on the table and I decided to get the bill corrected when I checked out.
Photo of a menu on a podium in the cashier area of the Ferguson Cracker Barrel on September 13, 2021.
When I presented the bill to the cashier, I explained that my bill was incorrect. A copy of Cracker Barrel's menu was sitting on a podium in the checkout area and I was able to show her the $5.99 price on the menu. The cashier also explained that some prices had gone up, but that they were not reflected on the menu and she called for the manager.
Cracker Barrel checkout receipt with credit card number redacted.
After waiting for the manager for about 10 or 15 minutes, he also acknowledged that some of the prices on the menu were incorrect and that they were waiting for the company to send updated copies. I asked, how do we fix this? The manager replied that $6.99 was the price. I pointed to the menu setting on the podium and stated this is the price, the $5.99 listed on the menu. The manager stated he had no way to honor the $5.99 menu price.
I mentioned under Missouri's truth in advertising statute, state law requires them to honor the menu price. I further explained that it was a simple matter to place a sticker with the new price over the old price. The manager held firm on the $6.99 price. Rather than escalate the issue, I explained that I no longer wanted the to-go meal, and only paid the $6.99 price plus tax for the meal I consumed. I told the manager to tell Cracker Barrel's corporate office I would be filing a complaint with the Missouri Attorney General's office.
I don't regularly patronize Cracker Barrel and the location was chosen by someone else. I've visited Cracker Barrel maybe four or five times, usually to meet with others celebrating a special occasion. Before ever visiting a Cracker Barrel restaurant, I saw news reports about racial bias. That information helped to form my impression of Cracker Barrel. I prefer to spend my money with businesses that appreciate my patronage. In 2004 the U.S. Department of Justice settled a complaint that alleged Cracker Barrel:
allowed white servers to refuse to wait on African-American customers;
segregated customer seating by race;
seated white customers before African-American customers who arrived earlier;
provided inferior service to African-American customers after they were seated; and
treated African-Americans who complained about the quality of Cracker Barrel's food or service less favorably than white customers who lodged similar complaints.
You can read the consent decree for yourself. Later that same year, Cracker Barrel customers filed a $100 million federal discrimination lawsuit. I have no reason to believe this incident being discussed here was racially motivated; in fact, my server, the cashier, and the manager were all African-American.
Legal Analysis
When an offer is made and accepted a contract is created. Once I placed my order, a contract existed between Cracker Barrel and myself. Here's where it can get a little tricky; the menu is not an offer. Menus are considered invitations to make an offer. When I placed my order, I was making an offer to purchase the menu item (accepting their invitation). By taking the order the server is accepting the offer, thereby forming the contract. The consideration is made by my acceptance to pay for the $5.99 menu price in exchange for the food or beverage.
The essential elements of a contract in Missouri are: “(1) competency of the parties to contract; (2) subject matter; (3) legal consideration; (4) mutuality of agreement; and (5) mutuality of obligation.”
Since Cracker Barrel failed to honor the contracted price, they breached the contract and exposed themselves to the possibility for legal action simply because they wouldn't honor their menu price.
Truth in Advertising
The Missouri Merchandising Practices Act (MMPA), Chapter 407 of Missouri Revised Statutes, is the state’s primary truth-in-advertising law.
RSMO 407.010, defines the term advertisement fairly broadly which would include restaurant menus. An advertisement or solicitation that creates a false impression in the mind of a reasonable consumer and that was made with the intent of influencing a purchasing decision is unlawful false advertising in Missouri. The regulations specifically provide that reliance is not an element of deception or misrepresentation. 15 CSR §§ 60-9.020, -9.070.
RSMO 407.020 defines misrepresentation, suppression, or omission of any material fact among other things as an unlawful practice. Under the MMPA, “omission of a material fact is any failure by a person to disclose material facts known to him/her, or upon reasonable inquiry would be known to him/her.” The server, cashier, and manager all knew about the price change but failed to tell the customer.
RSMO 407.025 provides for damages and allows punitive damages and attorney fees.
To succeed in a false advertising claim under the MMPA, a plaintiff must prove the following four things:
There was a purchase, advertisement, or active solicitation of goods or services
The advertisement in question was primarily targeted for consumer purposes, not for business-to-business purposes
The advertisement or solicitation was, in some manner, unlawfully deceptive
The plaintiff suffered actual financial harm as a result of the false advertising
Truth in Advertising is not the same as Truth-in-Menu also known as “Accuracy-in-Menus” and “Truth-in-Dining” terms used to describe regulations governing restaurant menus. Many locations require that menu descriptions be honest and selling prices and service charges be accurate. Examples of information that should be carefully described include preparation style, ingredients, item size, and health claims.
Conclusion
It's unwise for a business to expect customers to pay for their mistakes. Until Cracker Barrel refused to correct its pricing error, I had an enjoyable experience. The meatloaf was decent and everyone else seemed to enjoy their meal. I relied on the accuracy of the menu. I don't know if I would have placed the same order if the $6.99 price was listed. I was actually considering a couple of more expensive options when I noticed the $5.99 menu. I might have ordered the chicken for $9.99 instead. Regardless, I would have still placed an order for my father. It wasn't that I couldn't afford the extra dollar, it was the total lack of regard and respect shown when they refused to honor their menu price!
Cracker Barrel ruined what would have been a positive experience and turned it into a negative one. If not but for the pricing error, I would have left very satisfied and my father would have been too. When I explained what happened, my father said you made the right decision to leave that other meal. Then I prepared his lunch myself.
Imagine you are at a store to make a purchase and a stranger snatches two dollars out of your hand. What would you do; keep quiet, say something, or do something? When Cracker Barrel wouldn't honor the menu price, I felt as if they were attempting to steal my money.
There are two separate causes of action to file a lawsuit against Cracker Barrel; "breach of contract" and "Missouri Merchandise Practices Act".
The breach of contract damages is only one dollar per meal. However, sometimes it's not about the money as much as the principle of the thing. If this was a deliberate tactic to increase profits, Cracker Barrel would know most people would never consider going to court for such a small amount. How many hundreds or even thousands of customers were overcharged? Everyone has to decide how much principle is worth to them. I've certainly spent more than two dollars in time and effort researching and writing this article which for me was worth it. I'm not planning to file suit.
Since the MMPA includes the possibility of punitive damages, that might prompt someone to file a lawsuit or even a class action. If someone were to file a lawsuit, Cracker Barrel would have to pay an attorney to represent them which could cost tens of thousands of dollars depending on the number of motions and hearings. A judge could decide to teach Cracker Barrel a lesson and award thousands in punitive damages.
The solutions were simple; use labels to show the new price, verbally tell customers about the price changes or make the adjustment when a customer complains. The reality is many customers might not notice or might be too embarrassed to mention the price difference. My research revealed the Ferguson Cracker Barrel's online menu (PDF) included the $6.99 pricing on September 13th. The manager could have simply printed copies for temporary use until the corrected menus arrived.
Cracker Barrel violated the law. Every member of our party thought it was wrong for them not to correct their mistake. Hopefully, Cracker Barrel will learn from this and treat its customers more fairly in future situations.
And if the American people don't benefit from these endless losing wars, why do we keep fighting them?
War is an economy. Anybody who tells you otherwise is either in on it or stupid" – War Dogs, the movie
by Miles Mogulescu, entertainment attorney/business affairs executive, producer, political activist, and writer.
The United States emerged from its victory in World War II as the world's preeminent superpower. Its annual military budget—about three-quarters of a trillion dollars a year—exceeds the aggregate of the next ten countries in the world.
Yet despite America's apparent global military supremacy, of the approximately dozen wars the U.S. has fought since 1945 (depending on how you're counting) the U.S. has lost every real war it has fought. (Its only "victories" have been minor military incursions to overthrow unfriendly governments in Grenada, population approximately 120,000, and Panama, population approximately 4.2 million.)
After millions of deaths of Americans and foreigners and trillions of dollars lost in places like Vietnam, Afghanistan, and the Middle East, is the U.S. any safer and secure because it fought these losing wars in far-off lands? No.
US soldiers stand guard behind barbed wire as Afghans sit on a roadside near the military part of the airport in Kabul on August 20, 2021, hoping to flee from the country after the Taliban's military takeover of Afghanistan.
Have the American people benefited from these wars? No. Hundreds of thousands of soldiers have been killed or wounded and trillions of dollars have been spent.
So if the American people don't benefit from these endless losing wars, why do we keep fighting them? The short answer is that there are powerful forces in America that get rich from endless wars: The military-industrial complex and its political and economic servants and enablers.
As CodePink tweeted last week:
In 2021, OVER HALF of our entire $741 billion Pentagon budget will go directly to private military contractors that profit from war.
President (and former General) Dwight D. Eisenhower warned in his 1961 Farewell Address to the nation, "We must never let the weight of this [the military-industrial complex] endanger our liberties or democratic processes. […] Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals."
Drive around the wealthy suburbs around the nation's capitol and look at the multi-million dollar McMansions owned by corporate executives and lobbyists who are the real beneficiaries of America’s forever wars. During the Afghanistan War, the stocks of the five largest defense contractors outperformed the S&P 500 by 58%. Fortunes end up in the pockets of corporate executives. They and their companies spend tens of millions of dollars lobbying Congress and contributing to Republican and Democratic politicians alike to buy their support for forever war and defense budgets totaling 60% of the Federal government's discretionary spending.
That's why, even as the Afghanistan War is ending, much of the corporate elite and the corporate media is ginning up a new cold war with China, to justify continued overspending on the military.
The main danger to U.S. security is not a military invasion by a heavily. armed superpower enemy. Bigger national security threats today are climate change, cybersecurity, and global pandemics. These will not be addressed by spending more on the traditional military and fighting more losing forever wars. They require popular resistance to the military-industrial complex, the defeat of politicians on their payroll, and the transformation of American priorities from preparing for and fighting useless wars to addressing the climate, economic inequality, and equal justice.
As Warren Gunnels, staff director of the Senate Budget Committee, put it, "The only thing that we 'accomplished' by going into Vietnam, Iraq, and Afghanistan was to put trillions of dollars into the military-industrial complex and destroy millions of lives—period, full stop. It's time to stop repeating the same mistakes over and over again."
Open letter to Black Churches, Organizations, and their members
My late uncle, Dick Gregory, frequently declared that "The black woman and the black church are the two most powerful forces in the history of America." Black women are exercising their power, St. Louis' most visible examples are newly elected US Representative Cori Bush and the progressive St. Louis prosecutor Kimberly Gardner. It's way beyond time for the Black Church to assert its power!
I am the author of "Legal Research for Non-Lawyers," and maintain a free self-help legal information site that provides practical resources to help people help themselves. The site and its content are targeted primarily to Black people who can't afford an attorney, however, all visitors are welcome. Lack of legal knowledge and representation are among the black community's greatest obstacles.
I began publishing Court.rchp.com shortly after the 2014 murder of Michael Brown. Although I don't hold the power associated with monetary wealth, I am exercising the individual powers that I do have; time, information, and the ability to publish and reach out to others.
While exercising those powers during a recent research project, a disturbing pattern of institutional racism negatively impacting your members was revealed. Enterprise Rent-A-Car has been accused of not renting luxury cars to African-Americans and instead use tactics to convince them to take lower-level vehicles.
Enterprise is not alone, many of the companies your members patronize practice the same sort of subtle racism. While drafting this letter, a news story aired in the St. Louis area about black women being refused dine-in service at a local Waffle House. However, white customers were allowed to dine in.
When my 92-year-old father saw the Waffle house news story, he stated, "White companies always use black people to clean up their messes", referring to the Black Waffle House Vice President defending the company against racial discrimination claims. I couldn't help but check out Enterprise Holdings Executive Officers and as expected, the only Black Executive was their Diversity Officer.
Earlier this year, we also had an issue with State Farm Insurance company where racial discrimination may have played a part. We believed State Farm was charging us more than similarly situated white drivers and they had planned to unfairly cancel our policies. A formal complaint was filed with the Missouri Department of Insurance and State Farm rescinded the cancelation notice.
A Gallup Poll released last month, asked African Americans whether they had been treated unfairly in the last 30 days.
35% report mistreatment while shopping in a store
About one in five reports unfair treatment in other situations
54% of Black Americans report unfair treatment in at least one situation
Reports of mistreatment higher among Black than Hispanic Americans
Acceptance of subpar treatment invites increasing amounts of racialized mistreatment which ultimately leads to deadly encounters with white citizens and police officers falsely claiming self-defense and being believed.
Two of the largest black church organizations, The National Baptist Convention USA, Inc. and The Church of God in Christ (COGIC) together have over 43,000 congregations with over 12.5 million members in the United States, with millions more in other denominations. Black Americans have an estimated buying power of $1.3 trillion and donate a higher share of their wealth than Whites. If Black America was a country, we would be the 15th largest country by GDP, between #14 Spain and #16 Mexico. Black households on average give away 25 percent more of their income per year than Whites. Black churches take in an estimated $12-13 billion per year, an amount larger than the GDP of 74 nations. Before the pandemic, these two organization's yearly conventions contributed hundreds of millions of dollars to their host cities' local economies. In addition to church donations, nearly two-thirds of Black households donate to community-based organizations and causes, to the tune of $11 billion each year.
The combined membership and financial resources of black church congregations can be a powerful force in the fight against racial discrimination. When people discriminate against us they don't care whether we're Baptist, Catholic, Cogic, AME, Jehovah's Witness, Nation of Islam, or any other denomination, to racist, we're all just black.
Racists have been using a divide and conquer strategy against us for centuries. During slavery, it was field vs house slave, dark vs light-skinned. Divide and conquer is a strategy of maintaining power by breaking up larger concentrations of power into pieces that individually have less power than the one implementing the strategy. The strategy includes causing rivalries and divisions to prevent smaller groups from linking up to break up existing power structures. Racist institutions have perfected and modernized their methods. However, in the digital era, we're still using the same strategies employed during the 1960s. During the George Floyd protest, the Federal Government targeted Black Lives Matter leaders for prosecution.
As Malcolm X so aptly declared in his 1964, "Ballot or the Bullet" speech, "though Islam is my religious philosophy, my political, economic, and social philosophy is Black Nationalism"…"if we bring up religion we’ll have differences; we’ll have arguments, and we’ll never be able to get together."
Black Faith Union
The combined leaders of your organizations should consider forming a Black Faith Congress (BFC), similar to how African countries formed the African Union (AU). The BFC could even collaborate with black fraternities, professional, and social justice organizations and request membership to the Diaspora Division of the AU. Representatives from participating black denominations could present ideas to form a national strategy to combat the evil that is racism. The BFC could develop a national racism database to record instances of discrimination to reveal which companies and institutions demonstrate a clear pattern of racist policy. Organized sanctions, whether in the form of a boycott, lawsuit, or some other punitive action could be imposed.
The Black Faith Congress or whatever name is chosen could also help formulate a black economic game plan. The BFC could also create a national online database of black talent and black businesses. How many times does one of your members have the solutions to another member's problems, but they have no medium to connect?
You probably have many members with underutilized IT and website development skills that would be happy to work on such a worthwhile project. They might even be able to develop a Black Church peer-to-peer app similar to Uber, Turo, or Airbnb. The possibilities are endless. If the BFC started a credit union or insurance company, I would certainly join.
Funding for such a project could be simple. If each of your member congregations contributed just $25 per month to fund the BFC, in just one year they would have over $12 million to work with. If every congregation member contributed a single dollar each month, that would be over $150 million per year. Member organizations could hold fundraisers to purchase shares in the BFC. BFC shares should be restricted and only made available to your member congregations. Too many of our most promising and valuable assets, BET, Motown, and Johnson Publications (Ebony & Jet) among others for example are now white-owned and controlled. The BFC over time would then pay dividends back to the member congregations.
Additionally, charitable contributions from corporations should be denied, because donations can be used as control mechanisms. If you're dependant on racist corporations for funding, it might prove difficult to call them out on their racism. "Beware of strangers bearing gifts!"
The Internet has provided an opportunity for global reach. The pandemic has forced many of your member congregations to begin streaming their services. Zoom and other similar technologies have eliminated the need for the BFC to regularly meet in person reducing potential travel expenses. The members of your congregations are among the most talented people on the planet. The black church is synonymous with music, praise dance, and drama. Just about every major black artist has shared in interviews that their talent was developed in the black church. However, the black church doesn't receive any financial benefit from the talent they helped to develop. There should be BFC recording studios and movie production crews. People are shooting movies on iPhones. The BFC wouldn't even have to worry about distributions because many of their member congregations have quality screens and sound systems and could become part-time movie theatres.
Tyler Perry, a well-known member of the Black Church, owns the largest film production studio in the United States. The BFC could partner with Perry to create content. Earlier this year, Tyler Perry asked the Black Church what good are you? The BFC could reach out and show him. The BFC could organize and monetize the church's talent into streaming content. They could start by creating a YouTube channel but work to ultimately create its own streaming service that the Black Church controls. How about a show similar to Shark Tank where black church members pitch business ideas to the BFC to fund. The BFC could get a percentage of ownership in the business. Religious organizations pay no taxes on their investments, whether from interest they earn on their investments or in capital gains.
Keep in mind, the Catholic Church is the Biggest Financial Power on Earth. The Vatican has a large number of shares in the most powerful international banks and corporations such as Gulf Oil, Shell, General Motors, General Electric, International Business Machines, etc. They own over 177 million acres of land and that may not include the hundreds of thousands of schools, hospitals, and other special use properties. Catholic churches pay a tax to the Vatican every year.
The BFC if properly executed and managed could bring in billions in additional revenue while also providing valuable service to the community.
In addition to making the private sector accountable, the BFC could create a police misconduct database where members report incidents of racial discrimination and other law enforcement misconduct. Police would no longer be able to hide their miscount reports, at least those made by your members. Those officers could be held accountable and a tool would exist to help identify and eliminate them.
Black church members
My parents were Catholic, my wife's family Pentecostal, my son is an ordained Baptist minister, and I have had close friends that are Muslim or Jewish. They are all kind and loving people who worship the same God, however, they simply have different customs and varied in ideology. Don't allow our difference in faith prevent us from working together to achieve a common good.
An email to some of the largest Black Organizations and Churches will be sent inviting them to freely use these ideas. Share this letter with your church if you believe in this concept. If you're a member of an association of Black Teachers, Black Lawyers, Black Doctors, or a member of a Black Greek, Black Professional, or Black Social Reform organization urge your organization to reach out to form associations with the other organizations. Competition for donations, grants, and other subsidies have divided many Black Organizations. The BFC could function as an affiliate organization similar to United Way serving Black Churches and Organizations.
Some sort of audit mechanism would need to be in place to control corruption. We all know there are those among us who will sell us out for opportunity.
We understand that many congregations and organizations may not be interested. Partnerships can be local, regional, or national. You don't need everyone to participate to achieve success. One hundred years ago "Black Wall Street" was destroyed, lets build another using the Black Church as a foundation. If the pandemic has demonstrated but one lesson, it's "United we stand, divided we fall!"
"Every kingdom divided against itself will be ruined, and every city or household divided against itself will not stand." – Mathew 12:25
Christopher Hill, Founder/CEO of ManUpGlobal and co-author of the book, "The Re-Factor," recently endured a car rental experience from hell. He was placed on Enterprise Rent-A-Car's do not rent (DNR) list by mistake.
Enterprise and other car rental companies maintain a (DNR) list which is a list of customers who have been forbidden from renting a vehicle for any reason.
Christopher was preparing for ManUpGlobal's Operation Suave when his car became inoperable because of an accident. Below is an interview Christoper did before the event.
Christopher who happens to be my son needed a car immediately and there was a rental car shortage. He eventually found a vehicle at Avis in West County about 20 miles away for $100/day. Christopher drove the Avis vehicle that weekend and to work Monday.
Christopher is an ordained minister, he is employed by a non-profit organization where he teaches classes to incarcerated men transitioning back into society, however, he has never been incarcerated himself or had any major legal issues.
On Monday, May 24, 2021, I searched for a better rate while he was at work and made a car rental reservation on Enterprise.com. I normally rent from their Dellwood location and reserved a midsize there for $82/day. That reservation was canceled after I discover a midsize rate of $38.75/day at the Ladue location.
Enterprise reservation for 5-24-2021 showing daily rate of $82. This reservation was cancelled after the Ladue reservation was confirmed.
When Christopher finished working, We met at Avis and drove to the Ladue Enterprise location.
I listed Christopher as an additional driver, but we were informed he was on the do not rent list. Enterprise Rent-A-Car stated that a car Christopher previously rented had been repossessed, which we both knew was untrue. We waited while the agent tried to reach someone, however, Enterprise's corporate offices were closed. The agent told us she would check into the matter the next day and we ended up renting from another company at twice the cost.
Rental that caused Do Not Rent Blacklisting
Christopher rented a car from the Enterprise Rent-A-Car location, 2233 Washington Avenue in downtown St. Louis in December 2019, then extended the rental multiple times. On or about January 13, 2020, Christopher returned to the Washington Avenue location to extend his rental and provided his credit/debit card.
The car was returned undamaged on what Christopher thought was the due date, January 29th, his card was charged and he didn't think anything else about the matter. He was never told there was an issue or that he was being added to the DNR list or even that he was in danger of being added to that list.
The vehicle was returned undamaged, the credit/debit card provided was charged and the total fees were paid in full. Since there was no vehicle damage, no outstanding or unpaid fees. It's hard to understand why Christopher was added to the do not rent list.
False Hope for Removal
On May 25th, the Enterprise Rent-A-Car agent called to explained that she confirmed that the vehicle had been repossessed. I knew this information was incorrect. Assuming they mixed up Christopher's rental with someone else; I asked the location of the repossession. I was hoping for some clue which renter's car had been repossessed. The agent checked, called back, and then stated that the car had been returned but that a repo request was made before the vehicle being returned. The agent explained that her boss would call to see about removing Christopher from the do not rent list.
After not hearing from anyone, I phoned back and eventually spoke to a manager who stated Christopher could not be removed from the list. Upon further inquiry, I was provided with information for the Risk Management department.
Before calling Enterprise Risk Management, I phoned the repo company. The owner confirmed that on January 28, 2020, a repo order from Enterprise was received, however, it was canceled less than 24 hours later on January 29th. Enterprise experienced no charges for the canceled repo order according to the owner of the repo company.
Efforts to Resolve
I phoned the manager of Enterprise's Risk Management several times between May 27th and June 9th, but only reached his voicemail. I emailed a detailed message using Enterprise.com's customer service link. I received a response that they needed to hear directly from Christopher, so I forwarded the email.
On June 13th, Christopher contacted Enterprise by email. Explained he wasn't sure how he ended up on the DNR list and because Enterprise's office hours conflicted with his work schedule, he asked his father to look into the DNR list issue. Christoper disclosed he read his father's summary of the incident and the details were correct and to please accept the statement as if it were his own and asked to be promptly removed from the DNR list.
On June 14th, Enterprise apologized for the inconvenience, stated they would engage the management team at Risk Management and that they would contact him soon to provide proper assistance.
On June 25th, Christopher explains he had not heard from anyone. Christopher was approaching the July 3rd deadline for the auto insurance replacement from Hertz. Pandemic supply chain issues caused delays at the auto dealer where Christopher's car was being repaired. The dealer offered to provide him with an Enterprise replacement vehicle beginning on July 3rd. Because the DNR list issue was not resolved, Christopher had to pay to continue the Hertz rental. Hertz continued the rental at the insurance rate (around $26/day including taxes and fees) until August 11th at which time he was charged $975.87.
On August 10th, the dealership reserved a rental from Enterprise since Christopher's car still was not fully repaired. I attempted to reach the manager of Enterprise Risk Management again. The person who answered the phone (TW) explained he was on vacation and would not return until Monday, August 16th.
After explaining the details to TW, she found Christopher's rental record and stated that he had only paid for two days on January 13, 2020, that the car was due back on January 15th, but the vehicle was not returned until January 29th. I disputed that information and wondered if they might have mixed him up with another renter.
She provided me with her email to send some documentation we discussed, however, she stated Christopher would most likely never be removed from the DNR list. She said no one other than the department manager could remove Christopher from the list.
Christopher emailed me copies of his bank statements showing six separate payments to Enterprise Rent-A-Car totaling $1,214.28 concerning the rental resulting in him being blacklisted on Enterprise’s DNR list. (bank statements cutouts shown)
Dec. 19. 2019 $178.75
Jan. 02, 2020 $240.00
Jan. 07, 2020 $170.00
Jan. 13, 2020 $120.00
Jan. 21, 2020 $275.45
Feb. 03, 2020 $230.08
This information among other things was shared with Enterprise on August 11th. I received a response indicating I would be contacted by an area manager and another stating my message has been sent to the Regional Office, and someone would contact me concerning my son's 'do not rent' case. As of the publication of this article, we have not heard from anyone.
The dealership made a reservation in Christopher's name at Enterprise. Since the DNR list issue was not resolved, I had the dealership change the reservation to my name and picked up a vehicle. My wife drove the Enterprise rental and Christopher drove her vehicle. Christopher will not drive the Enterprise rental unless and until he is removed from the DNR list and authorized to drive it.
How the DNR List is Supposed to Work
Supposedly, most drivers don’t have to worry about ending up on a Do Not Rent list. The assumption is that renters are only blacklisted from car rental companies due to avoidable issues like failing to follow the terms of the rental lease, causing unpaid damage to rental cars, or participating in illegal activities. However, Enterprise has been shown to penalize renters for frivolous reasons. One man was added to the DNR list because he shared an address with a former roommate who owed a balance.
There's a Facebook group "Enterprise Rent-A-Car did me wrong", where people share how they have been wronged by Enterprise Rent-A-Car. Several people complained about being unfairly added to the Enterprise's DNR list.
What particularly caught my attention is how many people complained that they only discovered they were on Enterprise's DNR list at the rental counter which seems punitive and retaliatory. I can't imagine the stress of arriving in another city standing in line at the rental counter for a long time so you can attend a funeral, job interview, or some other important function, especially if you're running late, only to be blindsided with the news that you're on the DNR list!
Relevant Facts about Enterprise Rent-A-Car
Enterprise is the largest company of the US car rental Oligopoly which controls over 94% of the market:
AvisBudget Group (owns Avis, Budget, and Payless)
Enterprise Holdings (owns Alamo, Enterprise, and National)
Hertz Global Holdings (owns Dollar, Hertz, and Thrifty)
Enterprise Holdings and its affiliates own nearly 1.7 million cars and trucks, making them the largest car rental service provider in the world measured by revenue and fleet. The company is privately owned by the Taylor family, #48 on Forbes 2020 America's Richest Families List, with a net worth of $7.8 billion. Enterprise dominants the insurance replacement market. According to Auto Rental News at one point Enterprise controlled over 85% of that market.
Jack Taylor (d. 2016) founded Enterprise in 1957. He named the company after the USS Enterprise, an aircraft carrier he served on as a Navy pilot during World War II.
Jack Taylor's son, Andrew C. Taylor is Executive Chairman of Enterprise Holdings.
Andrew C. Taylor's daughter Chrissy Taylor is the president and CEO of Enterprise.
The St. Louis-based company reported $22.5 billion in revenues for the fiscal year through July 2020, down 13% due to less travel during the pandemic.
Enterprise has 80,000 employees and operates in nearly 100 countries and territories.
The Taylor Family controls two major charitable foundations; the Enterprise Holdings Foundation with over $323 million in assets and the Crawford Taylor Foundation with over $585 million in assets.
A previous negative experience with Enterprise was used as a teachable moment on this site in 2015.
Legal Analysis
It seems extremely unfair that a company would ban some of its customers for life, sometimes for minor transgressions, however, if you’re placed on a Do Not Rent list for a legitimate reason, you generally don’t have legal recourse against the company, including any right to appeal. When you land on a DNR list of the parent or subsidiary DNR list you are barred from renting from any of the related companies.
When a person is mistakenly placed on a DNR list, there may be remedies available.
Car rental agreements are contracts. Therefore the first step is to look closely at the contract, which usually includes two separate parts.
“The big print giveth and the little print taketh away”
The contract you are given at the rental counter is often a rental summary (big print) which provides the most important details. There's usually a terms and conditions section (little print) that may be accessible thru an internet link, printed on the rear of the contract in small print or attached.
It's been nearly two years since the December 2019 rental resulting in Christopher being listed on the DNR list and he did not have a copy of that contract. Assuming that my August 11th contract is the same as Christopher's prior contact, our discussion will concentrate on what I consider the most relevant parts of the contract concerning the DNR list issue.
Section 1, provides the following definition: “Rental Period” means the period between the time Renter takes possession of Vehicle until Vehicle is returned or recovered and in either case, checked in by Owner. This is an interesting definition since this could be interpreted differently than the dates appearing on the rental summary. The summary portion of my rental contract listed 8-11-2021 as the pickup date and 8-12-2021 as the anticipated return date. When I asked Enterprised about this, I was told the dealership usually rents the vehicle for a single day and then continues to renew the contract each day until the repairs are complete. Therefore, even though the rental summary so far indicates my car is over a week late, the rental is still valid and I have legal possession. A similar situation might have been the source of Enterprise's confusion concerning the January 2020 due date.
Section 4 – outlines the prohibited uses and what the renter shall not allow or do with the vehicle. None of the prohibitions were violated in Christopher's case, therefore, no further discussion is required.
Section 16 – Limitation of Remedy/No Consequential Damages. This may be unenforceable. Consequential damages, also known as "special damages," refers to damages from an indirect result of an event or incident. The difference between direct and consequential damages is not clear. When a generic exclusion of consequential damages is included in contracts without bothering to define what consequential damages are, it is frequently a fact question whether the damages are direct or consequential. Not long ago a federal court held that a contractual provision excluding “consequential damages” is ambiguous.
A breach of contract action includes the following essential elements:
(1) the existence and terms of a contract;
(2) that plaintiff performed or tendered performance pursuant to the contract;
(3) breach of the contract by the defendant; and
(4) damages suffered by the plaintiff. Howe v. ALD Servs., Inc., 941 S.W.2d 645, 650 (Mo. App.1997).
Inclusion on the DNR list would normally indicate a breach of contract. In Christopher's case, Enterprise suffered no damages.
The car dealership repairing Christopher's car uses Enterprise exclusively. That sort of market dominance certainly has created some situational monopolies. Exclusive contracts with a single car rental company can result in serious hardships if your job requires travel. With this in mind, we wondered if there are any legal remedies under the law when placed on a DNR list by mistake?
Missouri law implies a covenant of good faith and fair dealing in every contract. Slone v. Purina Mills, Inc., 927 S.W.2d 358, 368 (Mo.App. 1996). When Enterprise blacklisted Christopher without a valid reason or warning based upon his contracted rental vehicle, Enterprise violated the covenant and therefore breached the contract. Unlike Enterprise, Christopher has suffered damages. He suffered embarrassment, mental anguish, increased rental charges from May 24th, then July 3rd thru August 11th and August 20th; Christopher was forced to rent another vehicle from Hertz to drive to a speaking engagement about 200 miles away.
Since corporations are considered persons under the law when placed on a DRN list by mistake, would it be considered slanderous or libelous since each is a separate entity? We could find no case law concerning this issue and this question may remain unanswered until tested in court.
Car rental companies are public accommodation providers under the Americans with Disabilities Act and Title II of the Civil Rights Act of 1964, 42 US § 2000. Privately owned businesses and facilities that offer certain goods or services to the public including food, lodging, gasoline, and entertainment are considered public accommodations for purposes of federal and state anti-discrimination laws. Federal law prohibits public accommodations from discriminating based on race, color, religion, or national origin. If you believe you have been discriminated against, you may file a complaint with the Civil Rights Division of the Department of Justice, or with the United States attorney in your area. You may also file suit in the U.S. district court.
With this in mind, does a valid reason need to exist before placing members of a protected class on a car rental do not rent list without a clear and convincing reason? Business owners have the right to refuse service to customers for legitimate reasons. Business owners cannot refuse service to protected classes of people based on arbitrary grounds. Reasons must be legitimate enough to hold up in court, otherwise, a rebuttable presumption of discrimination could exist.
Considering the evidence of systemic racism we uncovered at Enterprise, with limited research, we believe it might be possible to make a prima facie case, especially once we conduct further research. To establish a prima facie case for public accommodation discrimination, the complainant must show that he/she: (1) is a member of a protected class, (2) attempted to exercise the right to full benefits and enjoyment of a place of public accommodation, (3) was denied those benefits and enjoyment, and (4) was treated less favorably than similarly situated persons outside her protected class. McCoy v. Homestead Studio Hotels, 390 F. Supp. 2d 577, 583-85 (S.D. Tex. 2005).
While evidence that a person engaged in bad behavior in the past is generally not admissible in court cases, habit evidence is admissible as an exception to this rule. Habit evidence refers to evidence of a repetitive response by a person to particular circumstances. Corporations are considered persons under the law. It is used in court cases for proving how that person would likely act in a similar situation.
We believe we have a valid claim under both state and federal law. We will allow Enterprise a reasonable amount of time to respond before filing suit if we so choose to pursue that option. We will update this page once additional details become available.
Racism at Enterprise
Enterprise CEO Chrissy Taylor published, “We Must Do More, and We Will”, a pledge to help increase racial equity in response to the murder of George Floyd. If sincere, I applaud Ms. Taylor's pledge.
As a black man, I have endured many slights and inconvenience that makes you wonder in the back of your mind if the treatment, lack of attention or service is because of race. This is because black folks have a proverbial institutional knee on their necks.
I don't pretend to know the hearts and minds of others; however, statements, tone, reaction, facial expression, and body language all provide clues. Although bias is often difficult to quantify, to paraphrase the late Supreme Court Justice Potter Stewart, "I know it when I see it."
Institutional racism is embedded through laws, regulations, and customs within society or an organization. It's less perceptible because of its "less overt, far more subtle" nature. It can be seen or detected in processes, attitudes, and behavior that amount to discrimination through prejudice, ignorance, thoughtlessness, and racist stereotyping which disadvantage minority ethnic people. It originates in the operation of established and respected forces in the society
Unfortunately, bias and prejudice are innate characteristics—often deeply ingrained and concealed from our own self-examination. The United States Supreme Court recognized this when it said that “[b]ias or prejudice is such an elusive condition of the mind that it is most difficult, if not impossible, to always recognize its existence.” Further, the high court said, bias or prejudice can exist in someone “who was quite positive he had no bias and said that he was perfectly able to decide the question wholly uninfluenced by anything but the evidence.” Crawford v. United States, 212 U.S. 183, 196 (1909).
Our research indicates some Enterprise policies and practices are most likely disproportionately negatively impacting African-Americans and other minorities. Below are some examples.
Miami Beach, FL – 2021
Earlier this year, a man says he was racially profiled at Miami Beach Enterprise Rent-A-Car. After waiting for hours over two days, a white female employee refused to rent him a car and called the police. When the police arrived, it was refreshing to see them take a neutral approach and not automatically believe the false narrative that the black customer was the problem.
Detroit, MI – 2018
Employees of the Enterprise Rent-a-Car at Detroit Metropolitan Airport claim black customers are discriminated against when trying to rent luxury vehicles. White customers were given discounts not available to black customers and code words to distinguish black from white customers were used. The video below provides shocking details.
Baltimore, MD – 2019
Enterprise Rent-A-Car Co. of Baltimore was ordered to pay more than $16.3 million in lost earnings, benefits, and interest to 2,336 black job applicants who were passed over for the company's management trainee program.
Following an investigation by the U.S. Department of Labor's (DOL's) Office of Federal Contract Compliance Programs (OFCCP), an administrative law judge found that the company—which is a federal contractor—showed a pattern over 10 years of discriminating against black applicants in favor of white applicants. According to the judge, the company's policy had a disparate impact, which means that a seemingly neutral policy was discriminatory in practice.
Alexandra, VA – 2018
Brendalan Jackson, an Enterprise customer in Alexandra, VA stated the following at complaintsboard.com:
"I have had multiple issues with Enterprise but figured that the representatives were having a bad day. I have called out a few situations at enterprise when I truly knew I've been racially profiled; then only to be patronized by Enterprise employees (Station Manager). I have called the customer service deescalation number for assistance; however, never getting my issue resolved (demeaning me further). My husband completed the registration online for me for a premium SUV (Chevrolet Suburban). I know I was racially profiled again on 11/21/18 in Old town Alexandria, Va. When I arrived at the counter there were two Caucasian females both to assist me. When they looked up my information they both looked at each other while I was standing there, one of the females switched the keys on the counter (as if I was blind and did not see them); I inquired if there was an issue? One of the ladies paused and said that both the Tahoe and Suburban vehicles were identically the same. She then continued to switch out the keys from the Suburban to the Tahoe (which had multiple issues). Now keep in mind that this is Thanksgiving Eve and I needed to get on the road to travel home, I didn't know what she was talking about until my husband informed me that the car wasn't a premium car that I was being charged /paying for and told me that I should've received a Suburban. I am an African American female with over 15 years of experience as a Master of Social Work that supervises a clinical program teaching adolescents on this very issue. I am appalled at the very treatment that I have been given as an Enterprise Plus Member and a paying customer of the Corporation. I am officially putting this on our Core Agency Web site to inform all of our over 5, 000 employees of this Metropolitan area. So that they avoid Enterprise and avoid them being humiliated as I have been on 11/21/18 and again another situation with enterprise at DCA on 11/17/18."
Ms. Jackson's complaint was marked resolved, however, we do not know what the resolution was. However, there were at least 27 discrimination complaints on the site including the one from a federal law enforcement officer below.
Tawana – another Enterprise customer stated the following at complaintsboard.com:
"Before arriving at the Enterprise Car Rental desk I called from home to ask what I needed to rent a car and I was told a credit card. I was asked if my credit card was linked to my checking account and I said yes. I was told to bring two bills (utility bills) from home. I brought four or five to be on the safe side. Once I arrived at the desk I presented all of the information that was required of me. The agent went over to another gentleman in the office and they began to whisper, the agent came back and asked if I had any proof that my bills are not past due. The bills that he had were current and had no past due amounts listed on them, which would have proved that they were not past due and were paid. I was the only African American customer in the office at the time, I was told that I had to pull up my bank account online at one of their desks in order for them to see if I paid my bills. They placed me at a desk to do so. I was extremely insulted by this treatment. I am a Federal Officer (Law Enforcement) and I was treated like a criminal."
On October 24, 2000, eight black individuals filed a class action complaint in the United States District Court for the Eastern District of Missouri (St. Louis), alleging that their employer, Enterprise Leasing Company of St. Louis and its parent company, Enterprise Rent-A-Car, engaged in racially discriminatory practices in promotion and hiring. The plaintiffs claimed that Enterprise was in violation of Title VII of the 1964 Civil Rights Act (42 U.S.C. § 2000e), The Civil Rights Act of 1866 (42 U.S.C. § 1981), and portions of the Missouri Human Rights Act (MHRA) RSMO 213.
On May 3, 2002, a judge signed a consent decree which required the Enterprise to pay $2.3 million in damages to the two sub-classes and the named plaintiffs and included injunctive relief requiring the company to make changes in the way it advertises and publicizes available jobs as well as how it communicates with those who are turned down for jobs within the company.
As previously mention, I normally rent from the Dellwood location, however, the May 24th reservation was made with the Ladue location because their cars were more than half off Dellwood pricing. I live in the Ferguson/Dellwood area which is predominantly black. Ladue is 94.1% white and only one percent black. I'm not sure why there was such a difference in pricing between Dellwood and Ladue, however, that fact taken along with other factors support an argument for racial discrimination.
At Enterprise, renters without a ticketed return travel itinerary need to provide a credit card with sufficient funds to cover the cost of their rental plus an additional amount between $200 to $400 based on the rental location. Why? What possible difference could the rental location make in determining how much deposit is required. Are Black renters being charged $400 disproportionately?
Age Discrimination
We also discovered proof of age discrimination at Enterprise.
2019 – Capital One, Enterprise Ensnared in Facebook Ad Bias Scandal – The U.S. Equal Employment Opportunity Commission found “reasonable cause” to believe Enterprise violated federal anti-discrimination law by restricting job postings on the social network to people of certain ages or genders. In both cases below Enterprise refused to promote anyone over the age of 40; click on cities for details.
The Taylor family owned the Keefe Group, a company profiting off public and private prisons and their prisoners. A 2015 Post Dispatch article, revealed the company has contracts with more than 800 public and private prisons. They are one of the larger players in a cottage industry that handles deposits to prisoner accounts, provides inmates with everything from food and condiments to music players and phone service. The following statements were made in the article: “They find so many ways to milk these people for every penny they can”…“You are talking about people who are extremely poor”, said Michael Campbell, assistant professor of criminology at the University of Missouri-St. Louis. Alex Friedmann, managing editor of Prison Legal News accused the Keefe Group of price gouging. The day after the first anniversary of the Michael Brown shooting death protestors marched on Enterprise Holdings because of their connection to the Keefe Group.
Months later, the St. Louis Business Journal reported the Taylor family was considering selling the Keefe's Group parent company Centric Group for $900 Million.
Our "Secret Meeting" page discusses the allegations that companies who profited off prisons conspired to target young black men to fill prisons. If your employer requires driving or travel, inclusion on a DNR list could result in job loss. I worked for a transportation company the used Enterprise rentals; if one of our drivers was on the DNR list and unable to drive those trucks, they may have lost their job. Unemployment, financial hardship, and poverty are among the top reasons people commit crimes.
If you are an Enterprise employee and have evidence of discrimination or unfair practices, please contact us.
Alternatives When Black Listed
As we discovered, landing on a DNR list can be a major setback. The first and most obvious alternative is to try another rent from another company not affiliated with the company the place you own their list.
If Enterprise or some other company is your only or lowest cost option, ask a friend or relative to borrow their car and offer to pay for the rental vehicle as a replacement. DO NOT DRIVE THE RENTAL. If the person on the DNR list is allowed to drive the rental, the renter could also end up on the DNR list.
Since three companies control over 94 percent of the car rental market, complain to your US Representative about how they are using their superior bargaining position to create unfair consumer conditions and request new regulations or breaking companies up into separate entities.
Check out Turo, a peer-to-peer car sharing, sort of the Airbnb of car rentals. Renters search for available vehicles listed by people who are willing to rent their vehicle often at prices much lower than car rental companies.
Another possible option if you need a rental for vacation is RvShare.com, where you can rent RVs and motor homes directly from local owners. UPDATE: RV Share became an affiliate advertiser after we published, so booking your RV rental thru the link above helps support this site financially.
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Conclusion
I did not want to write this article! Christopher and I made several good faith attempts to resolve this issue, but there comes a point where the ridiculousness of a situation just needs to be called out.
Mistakes happen, I understand that, but what’s important is how those mistakes are handled and Enterprise handled this issue very poorly. Research indicates that for every complaint expressed, there are over 25 unregistered complaints. Many dissatisfied customers just quietly take their business elsewhere. When you are the largest company in an Oligopoly that statistic may not be as meaningful.
We have had to expend too much effort trying to resolve an issue that never should have occurred in the first place. This situation has caused financial hardship, embarrassment, major inconvenience, and wasted a great deal of time.
Enterprise Rent-A-Car expended great effort explaining and justifying why Christopher was on the DNR list, but virtually no effort was expended to see if a mistake was made. I was told that it is not possible for Christopher to be removed from the DNR list and if that is true, it is unconscionable that Enterprise does not even consider correcting its mistakes or letting customers make amends.
As things stand now, avoiding Enterprise completely may not be possible. That is assuming they do not blacklist me on the DNR list for publishing this article. Enterprise Rent-A-Car may be the only option when a third party is providing a rental car. Enterprise will no longer be my primary choice for car rentals and I plan on doing a test rental on Turo in the future.
After we published, we heard about a Black diversity and inclusion business program manager from Microsoft who had his Avis rental car repossessed by mistake.
