That the aug 1 announcements and the underlying

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that the Aug. 1 announcements (and the underlying decision to halt the program without giving consumers a reasonable period of time within which to redeem their seals) constituted an unfair practice in violation of section 5 of the FTC Act. Aromatic argues, in defense, that its Aug. 1 announcements were easily understandable and contained no deceptive statements. It also argues that the elements of unfairness are not present here. Analyze and evaluate Aromatic's arguments.
58 . Average Corp. recently paid for an advertisement that appeared in newspapers across the country. The advertisement consisted of the expression of Average's views on what the federal government should be doing in order to help combat the AIDS crisis. In the expression of these views, the Average advertisement made erroneous statements about how AIDS may be acquired. Assume that the FTC, concerned about the erroneous statements, has begun a deceptive advertising proceeding against Average. What is the strongest legal argument for Average to use in an attempt to have the proceeding dismissed? Explain your reasoning.
59 . Pesky, Inc. employs numerous sales representatives who attempt to sell the company's products door-to-door. All of the products sold in this manner are designed for use in the home. They range in price from $29.95 to $149.95. Each Pesky sales representative has been instructed to provide customers the address from which warranty information about Pesky's products may be obtained. The sales representatives give customers this address before the sale of any product takes place. The FTC has sued Pesky in federal court, requesting appropriate injunctive relief on the theory that Pesky's practices (as just described) do not comply with the Magnuson-Moss Act and its implementing regulations. Is the FTC's position correct? Explain. 60 . Amy Ames applied for a loan at Local State Bank. Three weeks later, she received notice from Local State that her application had been denied. Ames later learned, from a reliable source, that the bank denied her application because a credit report on her stated that she regularly uses and deals in illegal drugs. Ames contends this statement in the credit report is untrue. What can she do?
Chapter 48 The Federal Trade Commission Act and Consumer Protection Laws Answer Key True / False Questions

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