The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Question
Chapter 24, Problem 1RE
Summary Introduction
Case summary:The person LS an African American read an advertisement in the newspaper from a local motorcycle dealer about the sale of electronic scooter EZ for $1,699. The person LS reached the dealer to purchase the scooter but found that the scooter is already sold. The salesperson offered higher model FZ from the previous one in $1,999. The person LS unwillingly decided to buy the scooter FZ and further wished to purchase the scooter on credit. The clerk in the credit department told the person LS that a cosigner is required to obtain a loan. When the person LS talked about this concern to the manager, he assured her that the clerk has been mistaken. The person LS after seven months from purchase received a letter from the manufacturer notifying her about recalling the model due to defect in the braking system.
To find: The engagement of dealers in deceptive advertising.
Expert Solution & Answer
Explanation of Solution
Deceptive advertising refers to the advertisement which misleads the consumer to buy with an expectation for the product to be genuine in accordance with the advertisement. The above case is an example of Bait and Switch advertising. It occurs when the seller performs any of the following acts: (1) The seller does not portray the advertised product, (2) stocks’ inadequate quantity. In the above case, when the person LS reached the dealer to purchase an advertised scooter, the dealer remarked it to be sold out and offered a higher model instead of the model advertised. Therefore, the dealer was involved in deceptive advertising.
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Students have asked these similar questions
Bart Inc. developed a new medical rub called “NoPain Muscular Rub” that can be used in the event of muscular back pains. Bart Inc. via an online advertisement stated that they are willing to pay $5,000 to anyone who used their muscle rub “Nopain” for one week and still suffers from back pains thereafter.
Bill who suffers from back pains, saw the online advertisement and decided to purchase “NoPain Muscular Rub”. He used it for a full week, but nevertheless still suffered from back pains. Based on the fact that the muscular rub “Nopain” did not relieve his back pains, he sued Bart Inc. for the monies that were promised.
However, Bart Inc. argued that the advertisement was not an offer, but an invitation to invite offers. They further argued that at no point in time did Bill make an offer and as such, they are not bound to pay him any monies, since the parties did not create any binding agreement.
Advised Bill on his legal options stating relevant case law as well as using the IRAC…
Bart Inc. developed a new medical rub called “NoPain Muscular Rub” that can be used in the event of muscular back pains. Bart Inc. via an online advertisement, stated that they are willing to pay $5,000 to anyone who used their muscle rub “Nopain” for one week and still suffers with back pains thereafter. Bill who suffer from back pains, saw the online advertisement and decided to purchase “NoPain Muscular Rub”. He used it for a full week, but nevertheless still suffered from back pains. Based on the fact that the muscular rub “Nopain” did not relieve his back pains, he sued Bart Inc. for the monies that were promised. However, Bart Inc. argued that the advertisement was not an offer, but an invitation to invite offers. They further argued that at no point in time did Bill make an offer and as such, they are not bound to pay him any monies, since the parties did not create any binding agreement.
Advised Bill on his legal options using the IRAC model
Bart Inc. developed a new medical rub called “NoPain Muscular Rub” that can be used in the event of muscular back pains. Bart Inc. via an online advertisement, stated that they are willing to pay $5,000 to anyone who used their muscle rub “Nopain” for one week and still suffers with back pains thereafter.
Bill who suffer from back pains, saw the online advertisement and decided to purchase “NoPain Muscular Rub”. He used it for a full week, but nevertheless still suffered from back pains. Based on the fact that the muscular rub “Nopain” did not relieve his back pains, he sued Bart Inc. for the monies that were promised.
However, Bart Inc. argued that the advertisement was not an offer, but an invitation to invite offers. They further argued that at no point in time did Bill make an offer and as such, they are not bound to pay him any monies, since the parties did not create any binding agreement.
Advised Bill on his legal options using IRAC
Chapter 24 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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