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BUSINESSLAW CHAPTER 33 - Business Law

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MARCH 2009 BUSINESS LAW CHAPTER 33 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. The court found that the agency was careless in the programming of its computer system and not having a procedure in place to be able to compare social security numbers. The court also awarded $10,000 to William III. 2. Yes, the FTC could prohibit this commercial because it made viewers believe that they were seeing an actual test with actual sandpaper and this may persuade them to buy the product. Use of a mock-up is deceptive. 3. 4. John York wins. There was fraud and misrepresentation about the knowledge of the car being in an accident. York may recover under UTPA. 5. Thomas is correct. The maximum liability that a credit card holder has to pay for unauthorized use is $50; BUT in order for him to have to pay that $50, he must have first requested the card, which he did not. 6. Yes, he does have some protection. The statement made about the income was not a matter of opinion, but was a fact on which he relied. The false statement consitiuted fraud and he can rescind the contract.
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