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Low-Valu Inc Owns and Operates a Number of Discount Mega-Stores

Question 40

Multiple Choice

Low-Valu Inc owns and operates a number of discount mega-stores.Because of increasing competition,it has engaged in a number of improper business practices.It was recently accused of a "bait and switch" practice in one of its stores.Which of the following statements is TRUE?


A) The alleged practice occurs when a store places two price tags on one item,and then charges the customer the higher amount.
B) "Bait and switch" is expressly prohibited by the Sale of Goods Act.
C) The phrase "bait and switch" refers to the fact that the alleged offence originally arose in connection with general stores in the nineteenth century,who sold,among other things,hunting supplies.
D) The alleged practice is a criminal matter under the Competition Act.
E) Low-Valu engaged in a bait and switch if it advertised a product at a very low price but told customers who came to its stores to buy it that none of the product was available but a higher priced alternative was available instead.

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