Chad Purchased an Economics Textbook Online from Shady Press Inc

question 46

Essay

Chad purchased an economics textbook online from Shady Press Inc for $40.While the information contained in the book appears to be correct and current,the book itself began to fall apart almost immediately.After he complained about the situation in an electronic chat room that had been set up by his course instructor,Chad discovered that a large number of other students had suffered through the same experience.Chad then emailed Shady Press to register his complaint and to ask for a rebate on at least part of the price.The company responded by saying that,as a matter of policy,it would not provide any sort of financial relief unless ordered to do so by a court.Although he is now even more annoyed at Shady Press than before,he assumes that he is,practically speaking,powerless to do anything.He has heard that litigation is expensive and he is unwilling to spend a lot of money in the hope of getting a refund on a book that cost only $40.Assuming that the company will not pay unless compelled by a judge to do so,what advice can you offer to Chad? Suggest,and briefly describe,several strategies that might overcome Chad's concerns about costs.(You need not go into great detail on each strategy. )

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Definitions:

Higher Risk

Refers to the increased likelihood of experiencing a loss or encountering a negative outcome in an investment or other business activity.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company would consider in order to pursue the project.

Accounting Rate of Return

A financial ratio that measures the expected profit from an investment compared to its initial cost.

After-Tax Net Income

The profit remaining after all operating expenses, including taxes, have been deducted from total revenue.