Are best deal pricing practices deceptive

Assignment Help Finance Basics
Reference no: EM131925301

Question: The Better Business Bureau (BBB) recently received a telephone call from an angry consumer who wished to complain about Best Deal Electronics--an electronics discount chain with nine stores in the surrounding four-state area. The consumer had gone to Best Deal to buy some items listed in an "inventory clearance sale" advertisement. The first item was a "top-name" color TV marked down from $450 to $200. Upon arrival at the store, he found only one of the featured TVs in stock--a floor model in very poor condition. The salesclerk apologized--and suggested that the customer buy one of the store's other models at "regular everyday low prices" ranging from $199 on up. The consumer then asked to see a video camera that--according to the ad--was "originally priced at $1,295" and "now reduced to only $795." The salesclerk pointed to a dusty camera in a case near the back of the store. On closer inspection, the customer realized that the camera was a three-year-old model that did not have any of the features found on new cameras--even one that regularly sold for less than $795. An official from BBB sympathized with the consumer and said that his agency had received many similar complaints about Best Deal. He went on to say, however, that there was very little anyone could do--other than to avoid shopping at such stores. Comment on the Better Business Bureau's analysis of the above situation. Are Best Deal's pricing practices deceptive and/or illegal? Can anything be done in such situations?

Reference no: EM131925301

Questions Cloud

Compute the taxable equivalent yield : Compute the taxable equivalent yield (for an investor in the 30 percent marginal tax bracket). (Round your answer to 2 decimal places.)
Fund your account back to initial margin requirement : Assume that a margin call requires you to fund your account back to the initial margin requirement.
What is the current estimated share price : ABC Corp is expected to have a share price of $75 dollars and a dividend of $5.00 next year. If the required return of equity is 7% what is the current.
What is the best estimate of the stock post-split price : The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price?
Are best deal pricing practices deceptive : The Better Business Bureau (BBB) recently received a telephone call from an angry consumer who wished to complain about Best Deal Electronics--an electronics.
Define payback period-net present value-profitability index : Define payback period, net present value (NPV), profitability index, and modified payback period accompanied by equations for better clarity.
What price would you expect to pay for the stock : ABC expects to pay a dividend one year from now of $2.13. The dividend exhibits constant growth of 6.7%, and the required rate of return on the stock is 12.1%.
Breakeven point-long dash-changing ?costs-revenues : How many books must JWG sell this year to achieve the breakeven point for the stated operating? costs, if all figures remain the same as for last? year?
Find the present value of the annual cash flow : An investment, which is worth 35,500 dollars and has an expected return of 10.84 percent, is expected to pay fixed annual cash flows for a given amount.

Reviews

Write a Review

Finance Basics Questions & Answers

  Bonds issued by the tyler food corporation have a par value

bonds issued by the tyler food corporation have a par value of 1000 are selling for 1270 and have 20 years remaining to

  Review spss access instructions for information

Review "SPSS Access Instructions" for information on how to access SPSS for this assignment. Download the SPSS/PASW data set file "Module 6 SPSS Data File," and use it for this assignment.

  Quartz corporation is a relatively new firm quartz has

quartz corporation is a relatively new firm. quartz has experienced enough losses during its early years to provide it

  Calculate alpha one''s net operating profit after taxes

Calculate Alpha One's net operating profit after taxes (NOPAT). Why does the NOPAT differ from the earnings after taxes?  Estimate the effective before-tax cost of the long-term debt. Estimate the effective after-tax cost of the bank loan and the lon..

  Corporate bond with the settlement

You have purchased a corporate bond with the settlement date on March 15 with the face value of $1000 and the coupon rate 11.06%

  Computing present value of different annuities

Find the present value of $300,000 annuity at 6% for 20 years-Find the present value of $500,000 deferred annuity at 6% for 20 (21-40) years-Find the present value of 50,000 annuity at 6% for 40 years

  Common assumption for the debt beta

The cost of equity for RJ corporation is 8.4 percent and the debt equity ratio is .6. The expected return on the market is 10.4 percent and the risk-free rate 3.8 percent. using the common assumption for the debt beta, what is the asset beta?

  Cornerstone of auditing

Independence is the cornerstone of auditing. It has two facets - the fact of independence (also called actual independence) and the appearance of independence (also called perceived independence).

  What is the formula to figure the unlevered beta

If a firm has a levered beta of 1.25 and a debt to equity of 1.5 what is the unlevered beta assuming a tax rate of 40% and a discount of 12%?

  Analyze the strengths and weaknesses of sentence

Analyze the strengths and weaknesses of each sentence. Revise the message so that it follows the guidelines outlined in your textbook.

  What is the future value of this prize

What is the future value of this prize if each payment is put in an account earning 0.07?

  Evaluate the realized rate of return for investors

Evaluate the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd