A furniture store in Sharjah advertised a Convertible Sofa Cum Sleeper “Big enough to sleep two people; Nice Oak Finish; Wide Choice of Fabric Colors – AED. 333 only.” This advertisement has created lots of interest among customers. The customers responded from various places in UAE. Ahmed, a customer was interested in the item that was advertised and goes to the store. When he arrives at the store he was told that there are only few left and that there wasn’t one set up. The salesperson tried several times to create interest for Ahmed in some of the more expensive models in the showroom, but Ahmed was not interested.  The customer insisted to see the product that was advertised. Finally, Ahmed was able to see the advertised product for AED. 333 and was shocked.  Even when it was opened out as a bed, it was several inches narrower than a full-size mattress.  In addition, the finish on the wood is very poor.  Lastly, Ahmed was told that the fabric colors – white only.  The customer was totally unhappy and disgusted. Questions: A. Has the store violated any business regulations? State the violations if any and explain in brief.                                                              B. Is it a fit case of Bait and Switch Scheme?  If yes, explain how Ahmed can take benefit out of the case.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A furniture store in Sharjah advertised a Convertible Sofa Cum Sleeper “Big enough to sleep two people; Nice Oak Finish; Wide Choice of Fabric Colors – AED. 333 only.”

This advertisement has created lots of interest among customers. The customers responded from various places in UAE. Ahmed, a customer was interested in the item that was advertised and goes to the store. When he arrives at the store he was told that there are only few left and that there wasn’t one set up. The salesperson tried several times to create interest for Ahmed in some of the more expensive models in the showroom, but Ahmed was not interested.  The customer insisted to see the product that was advertised.

Finally, Ahmed was able to see the advertised product for AED. 333 and was shocked.  Even when it was opened out as a bed, it was several inches narrower than a full-size mattress.  In addition, the finish on the wood is very poor.  Lastly, Ahmed was told that the fabric colors – white only.  The customer was totally unhappy and disgusted.

Questions:

A. Has the store violated any business regulations? State the violations if any and explain in brief.                                                             

B. Is it a fit case of Bait and Switch Scheme?  If yes, explain how Ahmed can take benefit out of the case.       

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