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 Fellow Weekly -  Issue 136

WHAT'S THE LAW

  

 

 

 

Encouraging intelligent and entertaining debate at your Shabbat table.
 
Fellow Weekly raises issues of business law and ethics through lively emails by featuring your real-life scenarios answered by our leading authorities and professionals.
  

 

 

 

 

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Case 250 Advertising Slogans!                   CLICK HERE FOR THIS ISSUE'S PDF

 

"Good to the last drop." - Maxwell House Coffee

"Relentless focus on you" - Office Max

"Lowest Prices in Town" ...

"The Happiest Place on Earth" - Disneyland

"The On Time Machine" - American Airlines

"Cabinets fit for royalty, but affordable for all" - Kitchen Cabinet Kings

 

What if the coffee was not good to the last drop? You did not experience the relentless focus on you? You subsequently found lower prices? You found a happier place on earth? Your daughter's plane landed late? It turned out that you were unable to really afford the Kitchen Cabinets?

 

Do you have recourse?

 

So you might suggest, "They really do not mean what they say."

 

If that's the case, how do advertising slogans work?

 

 

 

 What is the Law?

  

Please email us with your comments, questions, and answers at weekly@projectfellow.org.

  

  

CASE 249 Save the Koalas!

 

The Koala was hunted almost to extinction in the early 20th century; largely for its fur. Millions of furs were traded to Europe and the United States, and the population has not fully recovered from such decimations.

 

Save the Koala Bears' marketing experts inundated the public with an attractive and aggressively professional online campaign for their annual Chinese auction - featuring their celebrated mascot Eucalyptus. It was hard to find an Australian not buzzing about the impending Koala event.

 

The Levi's were elated when the phone rang after Sunday night salmon dinner.

 

"Hello Mr. and Mrs. Levi, Eucalyptus speaking. On behalf of the Australian Koala society, I am excited to inform you that you won the Dell New XPS 13 Ultrabook, valued on Dell's website at $1499; quite an amazing deal for a ten dollar donation towards my kin. Your new Ultrabook will arrive at your home within forty-eight hours."

 

The excitement at the Levi's though, was short lived. The Ultrabook malfunctioned and crashed numerous times within the first few days of usage. The Levi's hired a technician who confirmed that the motherboard contained failed capacitors, which left its trail of electrolyte across the board.

 

The Levi's paid Save the Koala Bears ten dollars for a ticket to win the Ultrabook. They won the laptop, then had to pay for a technician and it still did not work.

 

Do the Levi's have any claim against Save the Koala Bears or should they have considered keeping low expectations for a virtual giveaway?

 

 What is the law?

The Answer

 

We present you here with a concise ruling. For a more intricate elucidation, please see the detailed explanation below. 

The Levi's may require Save the Koala Bears to deliver a new working computer but not to pay for the technician they hired on their own.

 

See Detailed Explanation below.

 

  

  

  

Detailed Explanation    

  

Save the Koalas invokes the following four Halachos.

1. A consumer who noticed an unforeseeable blemish in the merchandise after the transaction was completed, is entitled to recourse ad infinitum provided that the consumer did not subsequently utilize the article. Otherwise, usage of the article indicates a consent to the deal [Choshen Mishpat 232: 3 Pischei Teshuva 1].

 

 2. Unless otherwise stipulated, transaction terms are subject to local accepted custom. Hence, the classification of blemishes worthy of recourse are subject to local custom [Choshen Mishpat 232:6].

 

3. Unless otherwise expressed, a contemporary consumer of a new article expects to receive merchandise void of previous defects or blemishes. (Unlike an error in quantity, which can be easily rectified without altering the essential product, and as such, the consumer cannot dissolve the sale if the merchant can supply the requested volume, a refurbished product is not a new product, and as such, having to refurbish or repair the merchandise is not considered rectifiable.) [Choshen Mishpat 232: 1, 7, Pischei Choshen Hilchos Ona'ah 13: 6].

 

4. One is absolved from paying for unintentional indirect damages [Choshen Mishpat 386, Imrei Yosher].

 

 

 

Application

 

When purchasing a new item, the consumer can expect to receive unblemished merchandise. Does a Chinese auction winner have the right to expect to win unblemished merchandise, or should the winner consider that the donated item came from stock that the donor store could not sell?

 

Dayan Chaim Kohn ruled that it is wrong and unjust for an institution to auction defective merchandise without being upfront with their clientele.

 

Objectively, a Chinese auction winner can require the institution to deliver unblemished merchandise. (In a society, where it may be unfortunately common to receive blemished merchandise at a Chinese auction, the winner's expectations would adjust accordingly.)

 

However, Save the Koala Bears is absolved from paying for indirect and unintentional damage caused.

 

Hence, if the winner hired the technician on his/her own volition, the winner cannot require the institution to pay.

 

As the institution is required to deliver an unblemished computer, if the winner does not mind a repaired computer, the institution may see it profitable to hire a technician. Thus, before hiring the technician, it is sensible for the winner to confer with the institution.

 

Otherwise, the winner may oblige the institution to supply a new working computer.

 

 

 

 

 

 

 

 

Note:
 
Although we aim to present the correct ruling, varying details are always important and decisively influence every individual case. Our readers are thus encouraged to present their personal cases to a competent authority and not solely rely on the information provided.
 

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