Chapter 11 Competition Act Flashcards
Which of the following statements about the criminal offence of misleading advertising in section 52 of the Competition Act is FALSE?
(1) The offence involves the making of a representation to the public that is false or misleading in a material respect, for the purpose of promoting any business interest.
(2) To escape liability, one must show that he or she honestly believed that the representations were not false or misleading and exercised due diligence in making sure that was the case.
(3) A “representation” to the public includes print and digital representations, but not oral representations.
(4) The requirement that the representation be false in a material respect refers to the whether the representation would have a real effect on an ordinary consumer’s buying de
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Devco Builders Ltd., a licensed real estate sales and development company, advertised in a newspaper that its deluxe condominiums come with a 10 year manufacturer’s guarantee for all electrical and heating appliances included with each unit. In fact, the advertisement contained an error; there was only a 2 year guarantee available from the appliance manufacturer.
One or more of the following statements may be TRUE.
A. These facts represent a potential breach of the federal Competition Act.
B. Devco Builders has potentially breached the Real Estate Services Act which prohibits the circulation of false information concerning a real estate transaction.
C. If Devco is the owner of the condominium development it is offering for sale, the Real Estate Services Act requires Devco to disclose its interest in the property to potential buyers.
D. Devco has not breached any statute law; this was only an innocent mistake for which Devco is not liable.
Which of the above statements are TRUE?
(1) A and B only
(2) A, B, and C only
(3) B and C only
(4) D only
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Section 52 of the Competition Act prohibits false or misleading advertising and creates an offence punishable by imprisonment or a fine. Which of the following statements is NOT true concerning this offence?
(1) This offence punishes misleading statements in various forms, including oral and written.
(2) All false advertisements made to the public will constitute an offence under the provisions of the Competition Act, even if the misrepresentation is not misleading in a material respect.
(3) Both the general impression of the representation as well as its literal meaning are relevant in determining whether a breach of the Act has taken place.
(4) The person making the representation can escape liability if he or she can show that they honestly believed the statement was not false or misleading and exercised due diligence in making sure that was the case.
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Section 52 of the Competition Act is a criminal offence that prohibits misleading advertising. Which of the following statements concerning this offence is FALSE?
(1) A person or company can be found guilty under section 52 when the general impression conveyed by an advertisement is misleading, even though every part of their advertisement is true in a literal sense.
(2) To constitute an offence under this section, the representation must be false or misleading in a material respect.
(3) The standard applicable in determining whether a statement is misleading or not is whether a consumer was actually mislead or deceived.
(4) Someone accused under section 52 can avoid conviction if they show that they honestly believed that the representation was not false or misleading and that they exercised due diligence in making sure that was the case.
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Section 52 of the Competition Act prohibits false or misleading advertising. Consider the following statements about that offence.
A. An element of the offence is a “representation to the public”, which could include statements made by a licensee over the phone to a purchaser of real estate.
B. For a misrepresentation to be contrary to the Act it must be false or misleading in a material respect.
C. The Competition Act applies to both oral and written representations.
D. To avoid liability under section 52, the person accused of the offence must show that he or she honestly believed that the representation was not false or misleading and exercised due diligence in making sure that was the case.
Which of the following is correct?
(1) All of the above statements are true.
(2) Only B, C, and D are true.
(3) Only B and D are true.
(4) Only A, B, and C are true.
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devco builders ltd, a licensed real estate sales and development company, advertised in a newspaper that its deluxe condominiums come with a 10-year manufacturer guarantee for all electrical and heating appliances included with each unit. in fact the advertisement contained an error, there was only two years guarantee available from the manufacturer of the appliances. which of the following statements is false?
- these facts represent a potential breach of the federal competition act
- devco has not breached any statute law, this was an innocent mistake for which devco was is not liable
- devco builders has potentially breached the real estate services act which prohibits the circulation of false information concerning a real estate transaction
- if devco is the owner of the condominium development it is offering for sale, the real estate services act requires devco to disclose its interests in the property to potential buyers
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which of the following statements about false or misleading advertising as prohibited by section 52 of the competition act is false?
- it is not an offense under the competition act for the visual advertisement to create a false impression as long as the written statements are true
- for misrepresentation to be contrary to the act, it must be false or misleading in a material respect
- the competition act applies to both oral and written representations
- to avoid liability under section 52, the person accused of the offense must show that they honestly believed that the representation was not false or misleading and exercised due diligence in making sure that was the case
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