| theprof00 said: But then things could be manipulated so as to specifically damage you. A company could literally just pay your suppliers not to give you parts. I dunno. You sound like a very smart person, but I'm highly skeptical on how this would possibly work. And phone contracts are made to offset the cost of the phones you're provided at a huge discount. What would you do? Just give back the phone? Give them back a NEW phone? You're now in possession of their property by cancelling the contract. Not to mention that we'd be up to our ears in convicts. We are already the top convict capital of the world. |
Why would they do that? If somebody ends a contract with you it is most likely because they just don't want to do business or can't do business with you anymore. I don't see why there has to be personal animosity. And if there is a huge chance of that, then people will adjust by only forming business relationships with those whom they trust, which de-incentives breaking promises because their business will start to fail if they play dirty without a state or some other organization to back them up. This already happens today, it's just that with the political influence in the economy some players have special priveleges. Anyway, why can't a company pay your suppliers not to give you parts now?
Termination fees are a de-incentive so that you don't go to the competitiors. If I had a cheap $20 phone that I paid for myself, I still have to pay a termination fee if I'm bound by a contract. It has very little to do with the free phones other than possibly contributing to their cost. It is also why you see competitors buying contracts these days. They understand the primary reason why these termination fees exist.
