In: Accounting
Scenario 5 – Consumer Protection [Restaurant Name] does not publish the prices of drinks on the menus. Nik Carlson, a customer of the restaurant filed a lawsuit claiming that failure to provide drink prices on the menu constitutes an unfair business practice because customers must make quick decisions about ordering drinks after asking about the price. Another plaintiff, Joe Swanson, claimed that he was not provided with a cost for his drink until after he ordered it, which constitutes consumer fraud. Analyze the applicability of state and/or federal consumer protection laws that Carlson and Swanson can assert against [Restaurant Name]. Select which party should win and support your answer.
This is where in the first case, Nik Carlson filed a lawsuit claiming that failure of restaurant constituted a an unfair business practice in that he was not able to make quick decision about ordering drinks about asking the price.The second lawsuit by Joe Swanson, who also filed a lawsuit arguing that he was not provided with his cost of drink until he ordered it which constitutes a business fraud.
It is clear in the context of the two cases it is clear that the two filed cases constitutes a violation for instance it is the role and responsibility of restaurant to display prices for their various items since they have not advertized their products in the context of informing the customer about the minimum prices of their products for decision making process.
This is where the law requires restaurants and cafes to provide menus or price list or a separate surcharge including the name of the product.
In regards with federal trade commission act chapter 15 &45 (a)(1) it is clear that it is the mandate of any consumer to commence lawsuits over false or deceptive lawsuits advertisments,or other unfair and injurious consumer practices.
Joe lawsuit is less of applicable in this context this is related with the fact that he already ordered the product without even considering the price of the drink where he considers the price later this is not a violation.
In regards with the above analysis it is clear that Nik Carlson would win the lawsuit case against the restuarant in that his agreement is outlined in the consumers act as compared with Joe's argument.