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Presentation/PPT
27/08/2022
Consumer Law 53. Reference: “Convertibles.” Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry’s action in regard to the Wind vehicles. After appropriate proceedings, the Commission proceeded to issue a cease-and-desist order involving Barry’s misleading advertisement in regard to Wind vehicles and also in regard to any other vehicles he offered for sale. What kind of objectionable advertising, if any, was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle? A. Advertise-and-deny B. Claim-and-refuse C. Bait-and-switch D. Ad trickery E. He was not engaged in any objectionable advertising so long as he had at least one vehicle in stock at a price of $10,000
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