How Legal Implications Differ from Ethical Implications
Not what you're looking for?
Question:
What are the legal implications and how does that differ from the ethical implications?
Story:
There was a TV advertisement for a car for 14,900. I went in and asked for the car in the advertisement. The sales rep said it was for a manual transmission with no air. When I asked about what would it cost for an automatic transmission he quoted a higher price, saying that I could receive $2000 off the stick (based on relevant discounts) with an additional $3000 from Toyota. As we were signing the paper work, I overheard another sales rep tell a customer that the $14,900 was for the same car with the automatic transmission in the showroom. I stopped my sales rep and he said no that was not true, restating that $14,900 was for the manual transmission with no air. Less than 24 hours later, I saw the same advertisement with a $13,900 price. I called the sales manager and he said that the automatic was always $14,900 with the qualifying discounts. I said I wanted to bring the car back and he said that he would go over the numbers with me but the car was mine. It appears that the TV advertisement was the bait.
Purchase this Solution
Solution Summary
There are three guidelines to help consumers to spot illegal or fraudulent stales tactic. Sales people in the automobile, electronic, and other retail businesses will sometimes practice illegal sales tactics. Ethical implications includes the treatment of customers in the spirit of the law and the letter of the law.
Solution Preview
This is a simple "bait and switch" scenario
Friedman (2013) defines bait and switch to "include scenarios where consumers are lured in with a low-price introductory offer and are later locked in to paying a potentially higher price for the same offer" (p. 579).
What are the legal implications?
Marco (2007) offers at least three guidelines from the Federal Trade Commission about what is "bait and switch" advertising and what isn't.
• It is not bait and switch when the seller has the option to sell you the bait but talks you into buying another product.
• It is not bait and switch when the seller runs out of the product it offers and the advertisement states that there limited quantities.
• It is bait and switch if the seller shows you a ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.