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Student CAH Dr. Dixon LEG500 Law and Ethics May 28, 2011
the advertiser tells the customer once they arrive that the original product that is being advertised is no longer available or out of stock even though it may be available and then try and push the customer to purchase a product that is more expensive (Stafford. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. 2011). Tony has a duty to Betty to honor their advertisement. the consumer. Advertisements in reality are to promote business for a company such as Rally Motors in order to bring in customers and are not defined methods of an offer to a customer. with the intention of trying to push Betty to purchase a more expensive product. It is quite clear that Tony used false advertising tactics and coercion to convince Betty to drive the distance to purchase a product that existed however. Betty drove three hours in 100 degree heat. the mere fact that Betty drove the distance of three hours in hundred degree heat has no bearing on whether or not Rally Motors should perform a duty to sell a vehicle to Betty in the accordance of their advertisement of a truck in the newspaper. Tony. Unfortunately.2 Assignment #4: BAIT AND SWITCH ABSTRACT ³Bait and Switch. clearly illustrates a situation of ³bait and switch´. In the situation involving Betty.´ is defined as an illegal advertising tactic in which the seller will publicize a product for sell in order to lure customers in and then try and convince them to purchase another product that is more expensive (Shrimp. In the video. In a bait and switch scenario. The following questions will establish a more clear explanation of ³bait and switch´ between Betty and Rally Motors and if Rally Motors and its representative. 2007). It is up to the customer to read the fine print of an . and Rally Motor¶s sales representative. the scenario.
is the fundamental components of a contract (The Free Legal Dictionary. In order for a contract to exist between the two parties involved. These products are available to the general public on a first come basis to sell. 2007). agreement. Rally Motors is not obligated under law on the simple fact that she had to endure conditions that were unfavorable to make a purchase on a vehicle. The ad in itself does not represent a ³bait and switch tactic´ in accordance to laws because there is no attempt of committing unfair practices by not selling Betty the truck advertised on the mere fact that she drove out of her way three hours in the heat and based on just that fact. there appears to be an oral contract since Tony stated in his phone conversation with Betty that he would purchase her truck for ³three thousand firm´ and therefore there could be a unilateral contract in effect. However. is consider an agent of the company and is acting as an authority on behalf of Rally Motors. if accepted. would bind the dealership to a contract with Betty. In the scenario between Tony and Betty. 2011). the sales representative for Rally Motors. 2011). . Assent means that an ³intentional approval of known facts that are offered by another for acceptance. When Tony said over the phone.´ explain whether or not he was making an offer that.3 advertisement and the terms in regards to quantities available and conditions. According to laws of advertisement. the dealership protected themselves in their offer by placing in their advertisement fine print. there needs to be an assent to the transaction. there is no contract between the parties of Rally Motors and Betty. consent (The Free Legal Dictionary. The advertisement that Betty read does not constitute an offer and therefore. these sorts of advertisements are considered ³initiations to treat´ which means the advertisers are inviting the general public to make an offer on the products that they are advertising (Shrimp. Tony. ³three thousand dollars firm.´ Assent of a transaction will take the form of an offer and acceptance and therefore.
According to our text regarding the ³Creative Code. There are no federal laws that state that employees cannot take advantage of specials advertised by their employers. 252). If employees were given an opportunity to take advantage of the sale and there were limited quantities to the consumer. many companies provide limitations of sales to exclude employees since this would be an unfair advantage for them to partake in the sales. This was a clear case of ³bait and switch´ since it was quite clear that the advertisement was trying to lure the general public in with an implied promise to give them an unbeatable price which is the term of ³baiting. this should have been clearly stated to the consumer that was legible and that the sale should have been available during normal business hours. Explain whether or not advertising specials can be taken advantage of by employees of the advertisers. however. Betty could essentially bring suit against the company fore false advertisement under the laws of ³bait and switch´ in accordance of the FTC since she could argue that Tony misled her into believing that the company would give her $3000 for her vehicle in order to get her to come into the dealership. this would be similar to inside trading since the employees would know beforehand when the sales would occur and be able to take advantage of these offers before consumers would have a chance to benefit. 2009.4 therefore protecting themselves from be obligated to the unilateral contract between Tony and Betty. If the company had not placed these protective measures. Since there was a limited quantity available to the consumers. p.´ The dealership tried to ³switch´ product but trying to push a more expensive product to the general public by telling them the .´ it is prohibited to advertise false and misleading information that is either visual or verbal in nature (Halbert & Ingulli. Employees should not be given first incentive to purchase limited quantity products since they could take advantage of this product before the doors opened to the public.
therefore advertisement is only binding when an assent of transaction has occurred (Chevere. and tasteful (Stafford. Customers have a right to see the model or similar in price model that was advertised in the advertisement. clear. 2011). The sale of a product has to meet the terms and conditions of the sale such as approval of financing for example. The American Advertising Federation has become a voice in the code of ethics when it comes to advertising and encourages truth in advertising (Stafford. 2011). . Consumers must assume and be aware that an advertisement does not bind advertisers to the terms of the advertisement especially when there is fine print in place to protect the advertiser. 2007). Since the sale was clearly not available in a reasonable quantity or not available to assume a false sense to discourage a reasonable sale.5 vehicle was already sold before the doors even opened by an employee. Retailers are not obligated to a consumer to a sale until a contract is in place. There are 3 rules that they encourage in order for the consumer to make an informed decision in their purchasing power and this is advertisement should be truthful. Explain to what extent an advertisement binds the advertiser to the terms of the advertisement. meaning they probably never intended to sell the product at that unbeatable price especially since there was only one. This clearly is an indicator that the dealership was violating the law by intentional hiding the fact that there was limited quantity available for that sale and Tony did not disclose this information to Betty in the attempt to lure her to the dealership to try and sell her a more expensive vehicle which is where the ³switch´ occurred. one can only assume that this was a case of false advertisement since Tony had to take out a magnifying glass to show Betty that there was only one vehicle available for that special. Explain to what extent an advertisement has to be true. the dealership could be committing false advertisement. In addition.
The information in the advertisement should be clear about the terms and conditions of the sale such as the delivery of the product. The information should provide if there is a limited quantity and if a rain check will be available or a similar product available.6 Advertisement should not be misleading to the consumer and provide truthful information so that a purchaser can make an informed decision on their purchase (Chevere. The advertisement should clearly state the price of the product. The advertisement should provide the guarantee of the terms such as warranties. returns. financing terms. The information in the advertisement should be clear as to the important characteristics of the product that is being advertised. 2007). leasing availability. and incentives. . and exchanges.
American Advertising Federation Code of Ethics. T.). 2011. from Code of Ethics of Advertising: http://www. (2011. 2011. Retrieved May 22. Advertising.com/assent . Retrieved May 20. from http://legaldictionary.ehow. Promotion.html Halbert. K.com/about_6538990_code-ethics-advertising. Stafford. OH: South-Western Cengage Learning. September).com/facts_6832547_american-advertisingfederation-code-ethics. from ehow.com: http://www. & Ingulli. T. A. (2011).html The Free Legal Dictionary.7 References: Chevere.com. E.ehow.. August 11). (2007). ehow. Shrimp. Mason. and Other Aspects of Integrating Marketing Communications. (2009). 2011. Law and Ethics in the Business Environment (6th ed. (2007. G.thefreedictionary. Retrieved May 20.