Mike visits an electronics store having seen an advertisement for a computer at a very attractive price.The salesperson shows him the computer willingly and describes the attributes.With a whisper,the salesperson says "I'm not supposed to point this out,'cause the manager would kill me,but even though this computer is cheaper,it's a real dog.No quality.This computer over here,while it costs more,you are looking at much more value for money." Mike is impressed at the forthrightness and the fact that the employee is taking a risk to help him make a good choice He buys the computer.The following week he notices advertisements for the model of computer he has just purchased,at prices between 20% and 30% below the price he paid.The store,by virtue of the actions of its employee,is in violation of the Federal Competition Act.

Question

Quizplus · Accepted Answer

The store's employee engaged in misleading advertising by disparaging the cheaper computer to promote a more expensive one, potentially violating the Federal Competition Act, which prohibits deceptive marketing practices.

Mike Visits an Electronics Store Having Seen an Advertisement for a Computer