Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 20

Should a Merchant Sell to One Who Lacks Capacity?
FACTS Alice Richards is a salesclerk for an exclusive department store in Connecticut. She was working in the children's clothing department when an elderly woman, Carrie Johnson, entered the area and began to browse. Because part of her compensation is based on commissions and it had been a slow season, Richards was eager to help her. However, when Richards asked Johnson if she needed any help, Johnson replied, ''No, I'm just looking for a new pocketbook.'' When Richards attempted to direct Johnson to the pocketbooks, Johnson did not appear to respond. Puzzled, Richards began to wonder whether the woman was mentally alert.
Johnson picked out infant's clothing and accessories worth approximately $250. At the cashier's counter she exclaimed how lovely everything was and explained that the jumpers and bath toys would go well with the other new clothes she had purchased for her son, who would soon be back from a cruise in the Bahamas. Worried that the woman did not know what she was purchasing, Richards asked her manager for assistance. The manager said that the sale should be completed, as long as the store's credit policies were satisfied.
Social, Policy, and Ethical Considerations
What responsibility does a retail store have in stopping a sale where a reasonable person would assume that the customer lacks capacity? What business policies are appropriate?