Well I'm doing more research specific to the state of missouri and am awaiting a response form the better business bureau. I have also contacted an attorney who specializes in this type of law to ascertain the legality of such practices. Kickstarter projects differ from what BFL is doing as far as I can tell.
I'll know for sure shortly depending on the response rate of the state of missouri and the attorney general's office, etc.
Maybe everyone else is fine with BFL's business practices, but I smell a rat here. If I'm wrong, well no harm done and everyone can carry on with their no interest loans. If I'm right then maybe they will be forced to engage in better business practices which should benefit everyone.
I'm baffled as to how people can believe this company is "on the level" when it took a demand from the community to get a simple clarification on their announced trade in policy.
You can't tell me they didn't already know how they planned on handling trade-ins before they made the announcement.
If so, then this is yet another example of a reckless announcement designed to hamper their competition and stall orders from competing vendors.
Once again, I am NOT anti ASIC, I'm anti poor business practices and this community and all consumers deserve better.
My purely academic view on this not to be construed in anyway as legal advice is:
I cannot think of anything that would make this practice illegal. You are under no obligation to enter into a purchase contract with BFL. It is their product to sell and as long as they do not make a material misrepresentation then deliver the product as promised then it seem like it would be a valid contract.
The elements of a valid offer include, Duration, Subject matter, Quantity, Quality, Work to Be Done, Price and Payment terms. There is bargained for exchange, namely the promise to send you a certain number of SC units, of a certain quality and quantity within a promised time frame in exchange for your payment. It is in essence an executory contract which you have performed on already by virtue of your payment and you are waiting for BFL to perform their side. If they fail to perform, you most certainly have a cause of action.
Even if their practices were actionable, you would not have a cause of action (in civil court) as you were not harmed (unless you ordered some already). You could perhaps be a witness in a criminal action by the state or federal government if they decided to prosecute them for some type of illegal behavior, but again, I do not see anything illegal about their ordering process. You may not like it, but unhappiness with a contract process is not valid grounds for a tort action.
