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Question: The Better Business Bureau (BBB) recently received a telephone call from an angry consumer who wished to complain about Best Deal Electronics--an electronics discount chain with nine stores in the surrounding four-state area. The consumer had gone to Best Deal to buy some items listed in an "inventory clearance sale" advertisement. The first item was a "top-name" color TV marked down from $450 to $200. Upon arrival at the store, he found only one of the featured TVs in stock--a floor model in very poor condition. The salesclerk apologized--and suggested that the customer buy one of the store's other models at "regular everyday low prices" ranging from $199 on up. The consumer then asked to see a video camera that--according to the ad--was "originally priced at $1,295" and "now reduced to only $795." The salesclerk pointed to a dusty camera in a case near the back of the store. On closer inspection, the customer realized that the camera was a three-year-old model that did not have any of the features found on new cameras--even one that regularly sold for less than $795. An official from BBB sympathized with the consumer and said that his agency had received many similar complaints about Best Deal. He went on to say, however, that there was very little anyone could do--other than to avoid shopping at such stores. Comment on the Better Business Bureau's analysis of the above situation. Are Best Deal's pricing practices deceptive and/or illegal? Can anything be done in such situations?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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