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The Legal Environment of Business: Text and Cases 10th Edition

The Legal Environment of Business: Text and Cases (10th Edition)

Book Edition10th Edition
Author(s)Cross, Miller
ISBN9781305967304
PublisherCengage Learning
SubjectBusiness
Section 24-1: Advertising, Marketing, and Sales
Section 24-4: Credit Protection
Legal Reasoning Questions
Chapter 24, End Of Chapter, Reviewing, Exercise 4
Page 529

Leota Sage saw a local motorcycle dealer's newspaper advertisement offering a MetroRider EZ electric scooter for $1,699. When she went to the dealership, however, she learned that the EZ model had been sold out. The salesperson told Sage that he still had the higher-end MetroRider FX model in stock for $2,199 and would sell her one for $1,999. Sage was disappointed but decided to purchase the FX model.

 

When Sage said that she wished to purchase the scooter on credit, she was directed to the dealer's credit department. As she filled out the credit forms, the clerk told Sage, who is an Asian American, that she would need a cosigner to obtain a loan. Sage could not understand why she would need a cosigner and asked to speak to the store manager. The manager apologized, told her that the clerk was mistaken, and said that he would "speak to" the clerk. The manager completed Sage's credit application, and Sage then rode the scooter home. Seven months later, Sage received a letter from the manufacturer informing her that a flaw had been discovered in the scooter's braking system and that the model had been recalled. Using the information presented in the chapter, answer the following questions.

 

What organization has the authority to ban the sale of scooters based on safety concerns?

Explanation

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Answer

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