C Chapter 32 Flashcards
Deceptive Advertising
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.
False Statements
Advertising that appears to be based on facts that are scientifically untrue is deceptive
Puffery
Vague generalities or obvious exaggerations – collectively called puffery – are not deceptive.
TLDR: Exaggerations
Bait and Switch Advertising
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”).
FTC Enforcement
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
Cease and Desist Order
issue a cease-and-desist order, requiring the advertiser to stop the unfair or deceptive advertisement,
Multiple Product Order
Impose a multiple product order, requiring the advertiser to cease and desist from falsely advertising all of the firm’s products or services, and
Counteradvertise
Requires the advertiser to counteradvertise (i.e., retract and correct its prior unfair or deceptive advertisement).
TLDR: whoops type
Name 2 deceptive sales tactics
Regulation Z
“Cooling off” law
Regulation Z
Federal Reserve regulation governing credit terms of sales contracts.
Cooling off Law
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.
Name 2 common environmental claims
Nuisance
Toxic Tort
Nuisance
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
Private Nuisance
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.
Public Nuisance
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.
Toxic Tort
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
Environmental Protection Agency (EPA)
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,
EIS Environmental Impact Statement
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.
Potentially Responsible Party PRP
A party responsible for the costs of cleaning up a hazardous waste.
Wetlands
Water-saturated, protected areas of land that support wildlife and cannot be filled in or dredged without a permit.
