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QUESTION

Provide a 6 pages analysis while answering the following question: Advanced Management Accounting of Sears Automotive Centers. Prepare this assignment according to the guidelines found in the APA Styl

Provide a 6 pages analysis while answering the following question: Advanced Management Accounting of Sears Automotive Centers. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The idea was to earn profits by attracting car owners to repair centers for brake repairs and selling them high priced repairs. The result was that car owner actually turned up paying many times higher than the lower priced break repairing jobs.

Bureau of Automotive Repair (BAR) of the California Department of Consumer Affairs (DCA) investigated the matter on basis of many complaints. In December 1991 Sears were issued letters by Senior Assistant Attorney General of California, and the problem originated.

Basically, the responsibility of the problem lied with the expansion program of Sears’ automotive centers that brought in car dealerships in its Car Repair Centers. These dealers made the undercard service of break repairing a tool to attract customers and selling them high priced repairs along with cheap break repairing.

1. Sears advertised break repairing job for $48 or for $59.99 to attract customers with an alert that ‘Every break/ alignment job is different because additional parts/ services are often needed at a substantial extra cost’. This was a ploy to cover additional repairing jobs created or originated at the workshop only.

3. In 34 out of 35 instances, the undercover investigators were told that cars on examination found to be in need of additional costly repairing jobs, when factually only minor repairing was required for undercover cars.

Legal defense is an ethical justification. (Bank MacDowell, page 64). ‘Counter arguments are responses to opening views.’(Writing Centers)ii Defenses put by Sears and its counter arguments with the strength of those arguments are as under:

Counter-argument: Sears has full right to challenge the method of conducting an investigation by BAR. At the same time, it appears that BAR took all precautions so that any misadventure of befooling the car owners comes to the fore.&nbsp.

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