False Advertising

False Advertising

You are a judge in a trial in which the defendant is accused of false advertising. According to the prosecutors, he gave misleading information about a free CD that he was offering people who visited his store. The CD was advertised as containing popular dance songs by famous artists but in fact contained versions of these songs sung by an unpopular local band. The CD was given away during a weekend sale, and many customers who got a copy of the CD also made purchases at the store. Answer the following questions:

a. Does the fact that the CD was free matter in this case? Why or why not?

b. How could the CD giveaway be said to influence people’s purchasing decisions in this case?

Solution: