The FTC was entrusted with the duty to adjudicate the matters relating to advertisement and fair trade practices. The FTC was entrusted with the duty for decades. The FTC started making rules which distinguished between fair and unfair trade practices.In the due process right of participants was limited in cases of violation of these rules. The process did not include the stage of cross-examination. The person who is booked for violating the rules will be given full adjudication but the legitimacy of the rule cannot be challenged in any case. It was more certain that the party charged with the violation of such rules will be adjudicated. The challenge against the new rules was filed in the court on the ground of limiting the rights of parties. To find: The factors that are responsible for upholding the rule.

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In 1992 the state of California charged Sears Auto Centers with overcharging customers for unneeded or unperformed repairs. Sears agreed to a settlement that could cost as much as $20 million. Sears had compensated its salespeople with commissions based on total sales. Following the settlement, Sears dropped the commissions and went to a straight salary. Sears recently indicated that it is planning to reinstate commissions for salespeople in their Auto Centers. It even plans on paying commissions for selling customers brake jobs and wheel alignments. These two products were the core of the 1992 scandal. Sears says that it has taken steps to prevent a recurrence of past problems. In particular, the decision right to recommend repairs is granted to mechanics who are paid a straight salary. Sales consultants are paid commissions for selling repair services but are not authorized to recommend repairs. Under the old system that caused problems, these individuals diagnosed repair…

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Chapter 23, Problem 1BS

Summary Introduction

Case summary:The FTC was entrusted with the duty to adjudicate the matters relating to advertisement and fair trade practices. The FTC was entrusted with the duty for decades. The FTC started making rules which distinguished between fair and unfair trade practices.In the due process right of participants was limited in cases of violation of these rules. The process did not include the stage of cross-examination. The person who is booked for violating the rules will be given full adjudication but the legitimacy of the rule cannot be challenged in any case. It was more certain that the party charged with the violation of such rules will be adjudicated. The challenge against the new rules was filed in the court on the ground of limiting the rights of parties.

To find:The factors that are responsible for upholding the rule.

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