Bus Law Ch 13 Part I

The Federal Trade Commission is charged with preventing unfair and deceptive trade practices.​

• True
• False

Deceptive advertising occurs if a reasonable consumer would be misled by the advertising claim.​

• True
• False

Vague generalities and obvious exaggerations are permissible in advertising.​

• True
• False

Puffery constitutes deceptive advertising.​

• True
• False

A sanction known as bait-and-switch advertising requires a company to advertise the products of its competitor to counter its own false claims.​

• True
• False

Ads must disclose qualifying information underlying their claims

• True
• False

Ads must disclose relevant limitations underlying their claims

• True
• False

Counteradvertising occurs when a salesperson lures a consumer into a store by advertising a low-priced item in order to switch the consumer to a more expensive item.​

• True
• False

An information label must be attached to every new car to include the fuel economy estimate for the vehicle.​

• True
• False

Food products are required to bear labels detailing the nutritional content.​

• True
• False