1. What is the significance of a price advertised by a manufacturer as a “maximum retail price”? How does this differ from a “suggested retail price”?
2. A retailer advertised television sets for sale with banner headlines that stated, “Special Sale! Brand X Model XX 20” colour TV only $199 with trade-in!” At his store he had three model XX sets for sale at $199, but required an older working model of the same type of TV as a trade-in. At his shop he would also urge customers to buy a different brand of TV at $599, since brand X, in his opinion, was poor quality and not really worth buying. A and B went to the retailer’s shop to buy a brand X TV set, but neither had a brand X TV set for trade-in purposes. Discuss the issues raised in this case.
