Topic
Business law
Instructions
Often, a company wants to get an outside opinion on a tricky legal question or sensitive legal matter, and will hire outside counsel at a law firm to assist. Each of you now has the opportunity to act as outside counsel and revisit whatever legal case study you think could use a more thorough examination. As a part of this assessment, you must locate, review, and cite at least one legal source. This source could be one that has previously been identified and cited, or you could research additional materials. Either way, you’ll need to locate the underlying source–not just a reference to it in the textbook or a secondary source online–and make clear that you have done so by quoting, summarizing, and citing appropriately.
For Board Meeting 10, see Chapter 34 (based on Ethics in a Business Setting pg. 591). Your company is a drug store, and it’s having trouble. A CVS moved in across the street, and a Duane Reade is going in around the corner. In order to save the store and entice buyers in, the treasurer suggested advertising a product for sale as being at cost without actually putting a product on the shelves at your cost on the sales dates. According to the proposal, if a customer specifically asks for such a product, your sales representatives will tell the customer that the store ran out due to demand, and offer the customer a rain check instead.
Your final paper must be:
- Page length: 2 pages
- Spacing: Double spaced
- Font: 12 point Times New Roman
- Margins: 1 inch margins on all sides.
- Must cite to at least 1 legal source. Examples of acceptable sources: case, statute, regulation, or government / regulatory guidance.
Answer preview
Consumers are protected in the United States under the States and Federal laws from business that may feel the need to take advantage or trick the consumers. The Federal Trade Commission has provided a framework that provides rules for “Truth-in-advertising” that necessitates that the advertising must non-deceptive and truthful, the advertising must have proof to back up any claims and the same must not be unfair to the consumers. In this case, the tactic that was used to lure customers to buy the product was unfair. According to the Federal Trade Commission an advertisement is unfair if it is likely to cause substantial customer harms, which they could not reasonable avoid and the advertisement cannot be outweighed by the benefit to the customer. Therefore, the method that was used by the organization was unfair and false, especially for a consumer who would come in the store to purchase an advertised product only to find that the product is not in stock.
Word count: 622