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Best Buy’s Black Friday Cancellations Were “Bait-and-Switch Breach Of Contracts”
UCC 2-301 is pretty clear: “The obligation of the seller is to transfer and deliver [the goods] and that of the buyer is to accept and pay in accordance with the contract.”
Here’s where it gets a bit hairy. Sometimes (say, the day after Thanksgiving) a retailer is offering a product of which there are only a limited number at the advertised price. The retailer can say things like, “only 10 available at this price” or “quantities limited” or “while supplies last.” Of course, there have to be at least some of the items available at the quoted price. At a brick-and-mortar store, it’s pretty easy. When the item is sold out (that is, when the quantity specified or reserved is gone), the sale at that price ends. For an online retailer, the legal situation is thornier. The Best Buy Black Friday door-buster online ad said, “Limited quantities. No rainchecks.”
The problem for the online consumer is that, even though there is a disclaimer saying the quantity is limited, if the retailer has not connected the marketing/purchasing system with the inventory system, the consumer is led to believe he or she has purchased the item and it is available.
It would be like a consumer in a brick-and-mortar store being handed a box, paying for it and then being told weeks later that the box is empty. If the item is truly “sold out” at the quoted price, then two things should happen: First, the online system should not let the transaction be completed. Second, the retailer should cease advertising that price unless it intends to honor it.
Look at what airlines do. They offer fares with “limited quantities.” But when you go to purchase these tickets, you find out they are “sold out.” Indeed, there are no longer any tickets available at the advertised price. Now, if you are taking out a newspaper ad, you have no way of knowing the items will be sold out in the future and you can get away with saying “quantities limited.” But online, if you are still “offering” the product at the price (and particularly as Best Buy did, confirming the sale), you should be bound to honor your contract.
So if I had advice for Miss Cindy Lou Who, I’d say, Merry Christmas to all or else I will sue!
If you disagree with me, I’ll see you in court, buddy. If you agree with me, however, I would love to hear from you.
Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code.
-Marc
