BAIT AND SWITCH

Bait and Switch

Bait and Switch

Question 1

Betty chose to drive because she wanted the truck and Tony's offer may have sweetened the deal for her and she took the bait. Tony may have demonstrated a Bait and Switch method on the customer. The bait and switch advertising is used by dealers, to lure customers to the dealership by advertising very low prices in their advertisements. The Insider's Guide to Car Buying states that “When uneducated customers arrive at the dealer, they are told the advertised car has already been selling or is not available at the advertised price. However, the dealer does have several cars, similar to the one advertised, at a higher price” (N.A., 2011).

In the video, Tony informed Betty that the truck in the ad has been sold, and she did not know that there was only one for sale. Tony even showed her the very fine print at the bottom of the ad that required a magnifying glass to read but. According to the Federal Trade Commission (FTC), the disclosure must be clear and conspicuously displayed in advertising (Protection, 2011). Although the print was very small, it was in the ad and it stated only one at this price, and provided the invoice number of the truck.

Tony pitched different options and similar trucks for Betty to purchase, doubled the price than the advertised one she was persistent on buying. However, Betty was determined she only wanted the truck that was advertised in the paper. She felt it was unfair that the employee had purchased the truck and Tom attempted to scam her into spending more money; therefore, she threatens to involve a lawyer if Tony did not justify the situation. Tony agreed to see what he could do to obtain the truck in the advertisement for her. Again even thought Betty had driven three hours in 100-degree heat, and it did not have a bearing on whether or not the dealer had to perform in accordance with the published advertisement, Betty was responsible for reading the transparent print regardless of how small it appeared.

Question 2

The offer that Tony made over the phone could bind the dealership in contract, because it was a verbal agreement. Regardless of whether or not he was making an offer or making a statement that was based on a potential offer the dealership is not binded to that statement. A sales contract is a legally binding contract that holds every party accountable for the smallest detail, which becomes binding when it has been signed by both the buyer and seller. At that point, both parties must fulfill the terms of the contract or be subject to the lawsuit from either party. Had Betty purchased the car the contract stated that she would receive $3,000.00 for her trade and the dealership later tried to change the trade-in amount, then the car dealership would be binded within that contract.

In general, verbal contracts are just as valid as written ones, In general, but some jurisdictions ...