[SOLVED] False advertising question

I’m studying for my Business Law class and need an explanation.

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[SOLVED] False advertising question
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(This story is similar to another scenario we covered earlier in the semester, but the facts and the legal issues are different.) Bob Smith is in the market for a new “big screen” flat-panel television. While reviewing the Sunday newspaper, he notices a full-page advertisement from “Techno Town.” The advertisement includes a 45-inch flat-panel television for $299. Surprised by the remarkably low price and eager to purchase this new luxury item, Smith makes plans to go the store on Monday morning.

Smith is the first customer to arrive at the store on Monday, waiting outside when the front doors open. He rushes into the store and announces to the first sales representative he sees, “I will take a 45-inch flat-panel television for $299!”

The sales representative immediately refers Smith to the store manager, who directs Smith to his office. The store manager explains to Smith that the advertisement was an unfortunate mistake, resulting from miscommunication between Techno Town and the newspaper publisher. The manager goes on to say that the intended advertise price was $2,999, but that he would be willing to sell the described television to Smith for $2,449, Techno Town’s cost for the television. Smith objects, demands that Techno Town sell the television for $299, and informs the store manager that his brother is a lawyer.

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