Alexio Read SmartHome's Ad in the Local Newspaper Advertising a Home

question 89

Multiple Choice

Alexio read SmartHome's ad in the local newspaper advertising a home communications system for $489. Alexio rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $849. Alexio gave the salesperson $489 plus sales tax and demanded the system.

• A) The ad is a firm offer by the merchant, and the communication system must be sold for $489.
• B) Alexio can successfully sue SmartHome for the difference if he buys the system for $849.
• C) The store must accept the price stated in the ad, but only if Alexio has a copy of the ad with him.
• D) Alexio is merely making an offer to SmartHome  to buy the communication system for $489 plus sales tax.

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Definitions:

Decentralization

The process of distributing or dispersing functions, powers, people or things away from a central location or authority.

Trade Barriers

Government-imposed restrictions on international trade, such as tariffs and quotas, that affect the free flow of goods between countries.

Inefficient Industry

A sector of the economy where resources are not optimally used, often leading to wasted efforts, higher production costs, and reduced competitiveness.

Cross-Border Flow

The movement of goods, services, capital, and people across national boundaries.