Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 6

Sentinel, a national automotive chain with auto centers throughout the United States, mailed coupons to consumers advertising discounts on brake jobs. Actually, this advertising was a baitand- switch scheme to get consumers into Sentinel's auto centers and convince them that additional repairs were needed. Sentinel had also established quotas for repair services that employees were required to meet. The company made millions of dollars on this scheme. Once the scheme was discovered, Sentinel's auto repair license was revoked and lawsuits were initiated against the company. Sentinel settled the lawsuits out of court, and as part of the settlement, it offered various types of auto repairs free of charge. Did Sentinel act ethically in this case? Why do you think Sentinel settled its claims out of court?