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Consumer Law Keyed to Pridgen, 5th Ed.
State v. American TV & Appliance of Madison, Inc.
Citation:
430 N.W.2d 709, 146 Wis. 2d 292 (1988)Facts
The State of Wisconsin filed a complaint against American TV & Appliance alleging violations of consumer protection statutes based on radio advertisements broadcast 164 times on twenty-two stations. The advertisements claimed that Speed Queen and Maytag were the best washer and dryer brands and offered a Speed Queen set for $499 during a clearance and closeout sale. American ordered only twenty of the $499 sets, purchasing them at $520 each and selling them at a $21 loss. American also ordered 133 more expensive Speed Queen sets costing between $518 and $604. During the sale, American sold only four of the advertised $499 sets but sold substantially more of the expensive unadvertised sets. American’s commission structure provided no commission on items sold below wholesale cost, thereby discouraging salespeople from selling the advertised sets.
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