There are numerous approaches a business will undertake to earn their revenue or establish their business model. Recently, Tommy Takem, owner and operator of Takem’s Appliances and Electronics, LLC, is questioning the business model he has adopted for his business. Takem has received a letter from his customer, Sally Walker, referring to his business as “unconscionable and therefore unenforceable.” Walker then threatens to sue Takem for punitive damages and will write letters to editors of local papers regarding the matter. Takem is very upset and wants to know if Walker’s threats have any merit, if his business model is legal, and what he can do to protect himself in the future, such as setting up a financing company to become a holder in…show more content… Although, high pressure sales is not illegal, utilizing such techniques against poor uneducated elders could be in Walker’s favor. Accoding to Chrisman, (2015) Walters v. Min Ltd., proves that high pressure sales tactics that mislead illiterate consumers may be one case in which a court would likely allow a party to avoid the contract” (p. 76). A court may rule that this case may apply to Walker as well. The second issue with the sales people that Takem has hired is, they are not divulging all the necessary financials to the cliental before they are signing the contract. It is stated in the prompt that, the Takem charged an extra 30% more by coming to the homes of cliental, and the sales people “obviously” did not mention this fact to the customer. As unethical as the 30% fee and the non-mention of the fee by the sales people is, this is not does not make the contract unenforceable or reason to void. The fact that Walker had all the information in front of her, and still signed, binds her to the contract and the unmentioned fees. After signing, Walker still had an opportunity to cancel, the Federal Trade Commission (FTC), offers a “cooling off” period up until midnight of the third day, for consumers who have been victims of door-to-door, high pressure sales. “The Commission stated that the rulemaking record reflected significant concern about high-pressure sales tactics and deception that can occur during in-home solicitations” (Federal Trade Commission, 2015, para. 3). Unfortunately, for Walker, she did not take advantage of this
