C Chapter 32

Question 1

Deceptive Advertising

Answer 1

Advertising that misleads consumers, either by making unjustified claims regarding a product’s composition, qualities, sponsorship, or performance or by omitting a material fact concerning the product’s composition, qualities, sponsorship, or performance.

Question 2

False Statements

Answer 2

Advertising that appears to be based on facts that are scientifically untrue is deceptive

Question 3

Puffery

Answer 3

Vague generalities or obvious exaggerations – collectively called puffery – are not deceptive.

TLDR: Exaggerations

Question 4

Bait and Switch Advertising

Answer 4

Advertising one product (the “bait”) at a very attractive price, then informing the customer that the advertised product is either unavailable or of poor quality, convincing the customer to purchase a different, more expensive product (the “switch”).

Question 5

FTC Enforcement

Answer 5

If, after investigating, the FTC staff determines that an advertisement is unfair or deceptive, it will send a formal complaint to the advertiser. If the advertiser refuses to settle the complaint, the FTC can conduct an administrative hearing. If the staff proves its case, the FTC may…

TLDR: stop lying about bedroom ketchup

Question 6

Cease and Desist Order

Answer 6

issue a cease-and-desist order, requiring the advertiser to stop the unfair or deceptive advertisement,

Question 7

Multiple Product Order

Answer 7

Impose a multiple product order, requiring the advertiser to cease and desist from falsely advertising all of the firm’s products or services, and

Question 8

Counteradvertise

Answer 8

Requires the advertiser to counteradvertise (i.e., retract and correct its prior unfair or deceptive advertisement).

TLDR: whoops type

Question 9

Name 2 deceptive sales tactics

Answer 9

Regulation Z

“Cooling off” law

Question 10

Regulation Z

Answer 10

Federal Reserve regulation governing credit terms of sales contracts.

Question 11

Cooling off Law

Answer 11

Laws that permit consumers a period of time after making a purchase from a door-to-door salesperson in which to cancel the sale and obtain a refund. In addition to various state cooling-off laws, the FTC also regulates door-to-door sales.

Question 12

Name 2 common environmental claims

Answer 12

Nuisance

Toxic Tort

Question 13

Nuisance

Answer 13

A person may be liable if they use their property in a manner that unreasonably interferes with others’ rights to use or enjoy their own property

TLDR: Interfering with use of propert

Question 14

Private Nuisance

Answer 14

If an individual can identify a harm to his property rights distinct from that suffered by others, then he may obtain relief for the private nuisance.

Question 15

Public Nuisance

Answer 15

On the other hand, if the harm is to the public at large, then generally a public authority will seek relief for the public nuisance.

Question 16

Toxic Tort

Answer 16

A theory of negligence or strict liability (depending on the circumstances) against those who pollute the environment with toxic substances. Ex: asbestos, radiation, hazardous waste

TLDR: Hazardous materials

Question 17

Environmental Protection Agency (EPA)

Answer 17

The primary federal regulator of air, soil, and water quality, its duties include reviewing environmental impact statements (EIS), which analyze the environmental impact of a proposed federal action,

Question 18

EIS Environmental Impact Statement

Answer 18

Is a formal analysis required for any major federal action that will significantly affect the quality of the environment to determine the action’s impact and explore alternatives.

Question 19

Potentially Responsible Party PRP

Answer 19

A party responsible for the costs of cleaning up a hazardous waste.

Question 20

Wetlands

Answer 20

Water-saturated, protected areas of land that support wildlife and cannot be filled in or dredged without a permit.