Bus Law Ch 13 Part III

A company that advertises using false claims and obvious exaggerations may be subject to sanctions for

• only the false claims
• only the obvious exaggerations
• neither the false claims or the obvious exaggerations

A company that advertises false claims about their own products and their competitor's products may be subject to sanctions for the false claims about

• only its competitor's products
• only its products
• both its products and its competitor's products

Advertising claims would most likely be deemed deceptive if the claims

• contain vague generalities
• consist of puffery
• mislead a reasonable consumer

Hearth & Home Furniture store advertises bedroom suites at a “Special Low Price of $599.” When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. This is

• a cease-and-desist order
• bait-and-switch advertising
• counteradvertising

The FTC investigates and concludes that a company's ad is deceptive. The FTC’s next step is to

• conduct negotiations with the company
• send a formal complaint
• issue a cease-and-desist order

Comfy’s Bed Company advertises a special sale on mattresses on its website. The mattresses are normally sold for $1,000, but are advertised on the website for $499. The sale price does not, however, include shipping costs. Comfy’s charges $250 for shipping any mattress. To avoid any claims of deceptive advertising, Comfy’s should

• clearly and conspicuously disclose the shipping cost in its ads
• display the shipping cost in small print on their website
• not include shipping cost on their website

A company is ordered to stop its false advertising of ALL its products. This is

• a counteradvertising order
• a multiple product order
• a cooling off law

Under federal law, in soliciting business, telemarketers must disclose

• all material facts related to a sale
• only the seller's name
• only facts directly related to a potential customer's request

On a food product’s label, standard nutrition facts are

• prohibited
• required
• strictly voluntary

Under federal law, the calorie content of the food on a menu must be posted by a company if the company is

• a restaurant chain with more than 20 locations
• a food distributor with 20 or more customers
• a food maker with 20 or more products