[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 acease-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) Claim-and-refuse
B) Ad trickery
C) Bait-and-switch
D) Advertise-and-deny
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.
Correct Answer:
Verified
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