Business law chapter 12

The following are examples of a company giving misleading price information except: Advertising "Limited Time Offer" when the offer is available forever. Advertising "Going Out of Business" when the company plans to stay in business. Advertising the product as "New" when the product is more than 6 months old. Advertising "Buy One, Get One" without informing consumers that they must buy another product or service to get the deal.

Advertising the product as "New" when the product is more than 6 months old

All of the following are considered unfair trade practices except: Targeting vulnerable populations. Charging extremely high prices. False advertising. False representation of a good or service.

Charging extremely high prices.

The Bureau of _______________'s purpose is to eliminate and prevent "anticompetitive" business practices related to the enforcement of antitrust laws.

Competition

The Bureau of ______________ protects consumers against unfair trade practices.

Consumer Protection

The ____________ was created in 1914 to address the problem of monopolies and trusts.

FTC

The _____________ has the power to create rules regarding widespread industry practices. Rules created in this fashion to address systemic issues are called trade rules.

FTC

True or false: Withholding pertinent information from customers may be viewed by the FTC as equal in severity to the process of using overtly incorrect or deceptive information.

True

False advertising includes the misrepresentation of a product, service, or price. It may be more expansively defined to include unfair sales strategies, such as advertising one item and then selling another item in its place, e.g., one that is higher priced, lower quality and/or less in demand. This method is most commonly referred to as "_____________."

bait and switch

The term "_________________" describes the use of deceptive, fraudulent, or unethical methods to gain business advantage or to cause injury to a consumer.

unfair trade practice

Do companies have to be prepared to honor product guarantees?

yes