1. Betty drove three hours in one hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. By law an advertisement is not a contract however, in most states the printed ad is technically an offer to sell in a specific vehicle at a specific price and if you take them up on the offer, then they have to sell it to you just as they advertised because you accepted the offer and were ready to pay the advertised price. If they won’t then you have to decide if it is worth it to go see an attorney about it. The Texas Department Trade- Practice-Consumer Protection Act (“DTPA”) prohibits dealers from advertising a vehicle for a price at which the vehicle will not be sold to any retailer buyer. If a dealer does so, the Texas DMV might pursue enforcement action against an allegedly defending dealer. The Federal Trade Commission (FTC) states that false advertising is a form of unfair and deceptive commerce. The term “false advertising” has been broadly construed. As you might expect, the term includes advertisements that are in fact untrue. However, the term false advertising extends well beyond untrue advertisements. It also includes advertisements that make representations that the advertiser has no reasonable basis to believe, even if the representations turn out to be true. An example would be an advertisement for a photocopier machine which stated that the machine used less toner than any comparable machine. The advertiser would have committed false advertising if it had no reasonable basis to believe the truth of this claim (such as through comparative tests), even if it turned out to be true. Also, be aware that sometimes car dealers will put an ad in the paper, just to get you down there, and try to switch you to another more expensive vehicle than the one advertised. There are lawyers that do nothing but sue car dealerships, and there are so many laws and regulations about “truth in advertising.
2. When Tony said over the phone “three thousand dollars firm,” explain whether or not he was making an offer that, if accepted, would bind the dealership in contract. Unless you have a written offer you have a problem proving that there was an offer of that amount. Also, if the vehicle is one that normally sells for much more, then you were on notice that the amount was not reasonable. A contract consists of voluntary promises, which the law will enforce, between competent parties to do, or not to do, something. These binding promises may be old oral or written. Depending on the situation a contract could obligate someone even if he or she wants to call the deal off before receiving anything from the other side. In order for a promise to qualify as a contract, it has to be supported by the exchange of something of value between the participants or parties. This something is called consideration. Consideration is most often money in exchange for property or services, but can be some other bargained for benefit or detriment (damage, or loss, anything that causes damage). Although most states recognize and enforce oral contracts, the safest practice is to put any substantial agreement in writing. Get any promise from a salesperson or an agent in writing, especially if there already is a written document that might be a contract covering any part of the same deal. The final qualification for a contract is that the subject of the promise (including the consideration) may not be illegal. The conversation on the telephone between Betty and Tony could not be considered as an offer that if accepted would bind the dealership in contract. Betty only knew that she was talking to a man on the phone and was not sure if he was Tony. The conversation over the phone is never considered as a strict deal according to the law because it is dependent on several reasons. The phone conversation could have been used for the explanation of the actual advertise.

3. Explain whether or not advertized specials can be taken advantage of by employees of the advertiser. The employees can take advantage of the advertisement. Most stores like their employers to buy things from them. Companies often disqualify the employees from special offers and specials in order to avoid the appearance of insider dealing or impropriety. The employee can be a great aid in solving problems. Their involvement can help improve relations between other employees. What employee and their families cannot do – and this is by federal law- is enter contest intended for customers. In the old days stores would have contests and the store owner’s wife would enter. When the store owner’s wife won, as usually happened, everyone would wondered if the store owner didn’t just dump all the entry blanks in the trash the night before the drawing, if a company wants to have a contest for its employee they can, but the employees can’t enter contest for customers Employee discount programs continue to be a viable employee benefit in the corporate perk lineup. To beef up recruitment and retention, nearly 20 percent of employers say they will offer more comprehensive benefits in the years ahead. While employee discount programs are an obvious win for employees by helping them to save on a variety of purchases. An employee discount program that includes the client’s services is a perfect example of partnership building. Most companies offer discounts to full - and part-time employees, although the discount may vary for different groups of employees. Family members often get discounts, too. Some companies even let their employees’ friends in on the benefit. Discounts not only save employees money, they also save them time, during the shopping experience. 4. Explain to what extent an advertisement binds the advertiser in the terms of the advertisement. Submission of an advertisement to the publisher does not constitute a commitment by publisher to publish the advertisement; the publisher accepts advertising only by publishing such advertisement. The publisher accepts advertising only by publishing such advertisement. Upon such acceptance, advertiser acknowledges that the terms and conditions shall apply to all advertising orders unless such terms and conditions are modified, superseded or otherwise altered by a written instrument signed by an authorized representative of the publisher. The terms and conditions shall prevail over any inconsistent terms and condition set forth in any order or contract form of any advertiser and insertion orders containing disclaimers are not accepted and are not legally binding or valid. The publisher has the right in its sole and absolute discretion to reject any advertisement or any portion thereof. The publisher reserves the right to alter any advertising material in order for the material to conform to its current mechanical specifications. The rates stated in the advertising agreement must remain the same upon a reduction in the size of any advertisement as long as the advertisement maintains the same proportion of the entire page. Advertiser represents and warrants that during the term of agreement, it must maintain in force a policy of general liability insurance in connection with the event in the amount of at least $1,000,000 per occurrence, which shall cover advertiser from any loss resulting from the risks therein. The policy must name the publisher as an additional insured and will state that it may not be canceled or terminated without thirty days prior written notice to the publisher. Also a certificate of insurance must be provided to the publisher upon the execution of the agreement. 5. Explain to what extent an advertisement has to be true. Much has been written about keys to great advertising. As impactful as advertising can be, it cannot overcome an ad business model or improve customer services. Organizations must be honest with themselves when identifying the factors adversely impacting business results. The most common misconception is that advertising can improve a company’s brand image. Sometimes it can, if a company truly has a great product and/or delivers a great customer experience, advertising can “tell the story” so that the public becomes aware and learns to appreciate the firm. Only allow advertising skilled marketers to be involved in the process. The good news is, most organization realize that advertising is key to the success of the business. When it comes to approving creative, the decision makers need to be involved and engaged throughout the process. If you have a “vote”, then you also have a responsibility to fully understand the project. You need to be familiar with the creative brief and any supporting data or research. Another key point is that not all marketers are skilled in advertising development. This is a hard truth for any marketer to accept, especially since so many people view advertising and marketing as synonymous. Obviously, there are other internal and external factors that affect the likelihood of producing great advertising, including the quality and experience of the agency, the competitive environment and, to a lesser degree, the ad budget. So when it comes to advertising, you must have true and quality work to keep up the brand image your company deserves. Respect the opinion of advertising decision makers, it contributes professional expertise that you don’t have.