Question Required: 1. What did you understand from this case study? 2. Has the s
ID: 432643 • Letter: Q
Question
Question Required:
1. What did you understand from this case study?
2. Has the store violated any trade and commerce regulation?
3. Explain violations by the furniture store in Dubai?
4. Is it a fit case of Bait and switch Scheme? If yes, explain how Ahmed can take benefit out of the case?
5. Compare and contrast laws of sale and consumer laws in the Middle East and examine the risks in specific transactions?
Case 1: Bait and Switch A Furniture Store in Dubai advertised a convertible sofa cum sleeper as: "Big enough to sleep for two people, nice mat finish, wide choice of fabrics; AED. 999 only" This advertisement has created lots of interest among the residents. The customers responded from Dubai, Sharjah, Abu Dhabi, Al Ain and other cities Marwan, a customer is interested in the item that was advertised and goes to the store. When he arrives at the store he is told that there are only a few left and that there wasn't one set up. The salesperson says that she does not know where the ones in the warehouse are and that it will take a while to locate them. The salesperson tried to interest Marwan in some of the more expensive models in the showroom, but Ahmed is not interested. The customer insisted to see the product that was advertised. Finally, Marwan is able to see the advertised product for AED. 999 only and was shocked. Even when opened out as a bed, it is several inches narrower than a full-size mattress. In addition, the finish on the wood is poorly applied. Lastly, Marwan is told that the only fabric colors are white, gray, and black, and that they are currently out of stock on the gray and white. The customer was totally unhappy and annoyed.Explanation / Answer
This is a case of false advertisement to engage people in the product. It creates a legal obligation on the seller if the product is not as advertised. False advertisement can lead a company to fall into lawsuit as availability of product should totally match the description in the ad.
Yes the store violated trade and Commerce buy false advertising the product and misleading the customer for creating better revenue from the same Market by providing false specification of the specific product.
Consumer Protection law is one of the main lost that the store violated. It is part of the UAE commercial transaction law which applies to the similar situation where the advertisement are falsely implement it to implement bait and switch scheme.
Definitely this is an example of bait and switch scheme as company attract the customers by showing false advertisement about the mattress and later does not have proper information as well as availability of the mattress even after having advertise as one of the main attraction for the store. By looking at the actual product and the differentiation from the advertise product, click and bait scheme can be clearly seen.
Ahemad can register a lawsuit against the store on the basis of consumer protection law in dubai.
As per the comparison of the laws from Middle East, availability of the protection law is relatively similar but in Middle East implementation of such law and punishment is relatively high. If any organisation uses which and bed scheme as well as other untruthful methods of operation then their licence is immediately seized. Heavy fine as well as imprisonment is also implemented in middle Eastern countries. As compared to the western countries rules are relatively strict as Western countries go with the trial and fine strategy which usually ends up in compromise between the two parties.
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