The Electric Knife

One day, Barry received a package in the mail containing an elec­tric knife from the Super–Knife Corporation. A letter was enclosed that said he was getting the knife for a free 10–day trial. Barry used it once and then forgot about it. Three weeks later, a bill came for $39.95 Must Barry pay?

Barry does not have to pay for the knife, nor does he have to re­turn it. Under federal law, all unordered merchandise received by mail may be kept as a gift. Sending unordered merchandise is un­lawful, and such activity should be reported to the U.S. Postal Ser­vice or the Federal Trade Commission. It is lawful to send free samples and to ask for charitable contributions, but the receiver of the goods cannot be forced to pay.

Problem–solving:

Shannon receives a mailing announcing a special introductory offer for persons who join a popular music club. As part of the promotion she can get six cassettes for only $1, plus shipping. In smaller print the offer says that she will also be required to purchase at least three cassettes per year for two years. The additional cassettes are sold at the club’s regular members’ price, plus shipping.

The club publishes a catalogue of new releases every other month. The catalogue is mailed to each member with one cassette preselected. A member who does not want that cassette must return a card to the company within two weeks of receiving the catalog. Otherwise the cassette will automatically be sent.

a. Is this mailing legal?

b. If Shannon takes advantage of this introductory offer, how many cassettes will she have to purchase?

c. What are the advantages and disadvantages of membership in this club?

Match the words on the left with the correct definition
on the right: