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[Convertibles] Oscar, a New Car Dealer, Advertised That a New

Question 66

Multiple Choice

[Convertibles] Oscar, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Rosa, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from XYZ Bank for the remainder. She wanted the loan for a specific amount of time. XYZ Bank offered her the loan and she agreed. The only information she received from XYZ Bank was confirmation that she borrowed $15,000 at an 8 percent interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Oscar's action in regard to the Wind vehicles. After appropriate proceedings, the Commission proceeded to issue a cease-and-desist order involving Oscar's misleading advertisement in regard to Wind vehicles and also in regard to any other vehicles he offered for sale.
-Oscar was engaged in what kind of objectionable advertising, if any, when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?


A) Advertise-and-deny
B) Claim-and-refuse
C) Bait-and-switch
D) Ad trickery
E) He was not engaged in any objectionable advertising so long as he had at least one vehicle in stock at a price of $10,000.

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