As a manager employed by Right-Now Rapid Delivery Service, you are responsible for pricing the services involving same-day deliveries. You are primarily concerned with the competitive aspects of your business. You have proposed contractual language that states:
â€œany package picked up after 10:00 a.m. will be considered as if it is picked up the next business day. Any package delivered before 10:00 p.m. on the day of pick up will be considered to have arrived on that business day. Under the language, a package received at 11:00 a.m. on Tuesday and delivered by 10:00 p.m. on Wednesday is considered, by you, to involve a â€œsame-day delivery.â€
The impact of this language is that a business day lasts for as long as 36 hours; thereby giving a customer the wrong impression of the phrase â€œsame-day delivery.â€ The Federal Trade Commission (FTC), under its authority to protect the public from unfair or deceptive trade practices, has contacted your company asking questions about the plain meaning of â€œsame-day delivery.â€
In anticipation of a face-to-face meeting with an FTC investigator, you strive to answer these questions:
(1) To what degree does the FTC have authority to question your business practices?
(2) Are your clearly stated contractual provisions unfair or deceptive?