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Assignment # 4: Bait and Switch

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Assignment # 4: Bait and Switch

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Law, Ethics, and Corporate Governance

1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement.

The fact that Betty drove three hours in one hundred degree heat may not necessarily have any bearing on whether or not the dealer must perform in accordance with the published advertisement. However, the dealer has a duty to perform in accordance with the published advertisement. According to the Federal Trade Commission (FTC),” advertising must be truthful and non-deceptive, must have evidence to back up their claims, and cannot be unfair ("Advertising: a guide for," 2001).” In other words, the advertisement must be a factual representation of services or goods being advertised. On the surface, it appears that the car dealer is involved in a bait and switch transaction which is illegal. Bait and switch is an illegal tactic in which a seller advertises a product with the intention of persuading customers to purchase a more expensive product ("Bait and switch," 2011). When a seller uses this tactic, they frequently tell the customer that the original product is sold out or no longer available (even if the product is indeed still available), and push hard for the customer to purchase the costlier product. This tactic can be considered false advertising if the seller is not actually providing the original product, but if the item is available but the seller strongly encourages the customer towards another item; in general no legal action can be taken. In the video, the dealer is heard pushing hard for Betty to purchase a more expensive truck. Betty feels that a deceptive advertising claim, which are claims likely to mislead reasonable consumers (Halbert & Ingulli, 2010, p.

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