Great Buy was advertising a sale on its Internet site for the new Sony 70" 4K Ultra HD 120 Hz 3D LED Smart televisions.The sale price advertised online was $2,999.95 and the advertisement indicated that customers would save $1,000 of the regular price with the sale ending on October 31, 201X.

In addition, the sale website said as follows:

NO INTEREST IF PAID IN FULL WITHIN 24 MOHTHS, PLUS NO DOWN PAYMENT

With a minimum $1,999 electronics purchase on your Great Buy card through 2/22, subject to credit approval, interest will be charged on your account from the date of purchase if the purchase is not paid in full within 24 months or if you make a late payment.

INTEREST CHARGES accrue on the promotional balance from the transaction date and all accrued INTEREST CHARGES for the entire promotional period will be added to your account if the promotional balance is not paid in full by the end of the promotional period or if you fail to make a required payment on your account when due.Minimum monthly payments of the greater of $25.00 or 3.25% of your promotional balance (which calculation is rounded to the nearest dollar) are required plus any minimum payment otherwise due.Making the minimum monthly payment will not pay off your promotional balance in time to avoid INTEREST CHARGES.See below for details.

NO INTEREST FOR TWO YEARS IF PAID BY PROMOTION EXPIRATION DATE.Requires a minimum purchase of $1,999 in the electronics department; $1,487 in other departments charged on your Great Buy Card, Subject to credit approval.INTEREST CHARGE will be determined by applying an ANNUAL PERCENTATGE RATE ("APR") of up to 26.99% (but if your account has a variable APR, a variable APR of 24.50% as of January 2015) to the account's Average Daily Balance with a minimum monthly INTEREST CHARGE OF $2.00.The variable rate will vary with the market based on the Prime Rate.Deferred offer good through 2/22.See Credit Card Agreement for additional details.

Homer Smith goes into the Great Buy store and agrees to purchase the Sony 70" Smart television with no money down.The sales person, Apu, says to Homer that before he can get the no interest, no down payment deal, he will have to run some checks and speak to his manager.

After waiting a few moments, the manager, Ned, comes onto the floor with Apu and congratulates Homer on his new television.Ned asks Homer to sign the sales contract, which reads as follows:

Date: October 10, 201X[1]

Homer Smith (Purchaser) agrees to purchase from:234567 Ontario Ltd. c/o business as Great Buy (Seller) the following described items:

Sony 70" 4K Ultra HD 120 Hz 3D LED Smart television, serial no. XXXXXXXXX

Sales price:$ 2,999.95

*Deferred payment option

administrative charge:$ 99.95

*Delivery charge:$ 75.00

*HST:$ 41.27

*Insurance:$ 29.95

Total purchase price:$ 3,246.12

Less:

Deferred payment option

administrative charge:$ 99.95

Delivery charge:$ 75.00

HST:$ 41.27

Insurance:$ 29.95

Total credits:$ $246.17

Amount financed:$ 2,999.95

ANNUAL RATE OF INTEREST: 26.99%

The amount financed shall be paid in23 (weekly/monthly) installments of $ 130.44 each, beginning one (week/month) from the above date.

The Seller shall retain title to the items sold until full payment of the purchase price and all accrued interest and other noted charges.The Purchaser acknowledges and agrees that they will safely keep the items free from other liens and encumbrances at below noted address and to not remove the goods without the Seller's pre-authorized written consent.

* Amount must be paid in full at time of purchase.

The Purchaser further agrees to execute all financing and other documents as may be required to perfect this conditional sales agreement, and the Purchaser shall keep the goods adequately insured at all times, naming the Seller as the loss-payee.

The Purchaser acknowledges and agrees that the full balance of the purchase price, including any interest accrued to that date shall become due and payment upon any default; and the Purchaser shall pay all the Seller's reasonable legal, collection, and recovery fees associated with the default and the recovery of possession of the goods.Upon such default, the Seller has the right to reclaim the goods, hold and dispose of them, and collect expenses, together with any deficiency due from the Buyer, subject to the Purchaser's right to redeem the items pursuant to Ontario law.

Accepted by who acknowledge receiving a copy of this document and understanding the contents of same:

Apu KhanHomer Smith

234567 Ontario Ltd. c/o Great BuyPurchaser

12 Bargain Road16 Gull Way

Street and Unit No.Street and Unit No.

BramptonBrampton

CityCity

N2N 1T1A2A 2T2

Postal CodePostal Code

Question:

In a group of four students, each student should review the advertisement and the contract on their own and then reflect individually on the following question:

Identify and explain at least four (4) ways that 234567 Ontario Ltd. c/o Great Buy has tried to ensure that the debt owed to it by Homer Smith gets paid? Write down your answers.

Once you have wrote your answers down individually, then discuss it with the group.Have you changed your mind about any of your answers and, if so, how?

Then be prepared as a group to discuss with the class at least four (4) ways that 234567 Ontario Ltd. c/o Great Buy has tried to ensure that the debt owed to it by Homer Smith gets paid.

FOUR WAYS: