21) Consumer Staples Inc. includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for

obvious exaggerations.

vague generalities.

puffery.

none of the choices.

Question 23

Lawn Care Inc. and Mower's Inc. both make yard tools. Both companies use only steel produced in the United States. Lawn Care's ad claims, We use only U.S. steel, while our competitor uses inferior foreign steel! Under the advertising standards of the Federal Trade Commission Act, this statement is most likely

an obvious exaggeration.

puffery.

a false claim about a competitors product.

a half true statement that Lawn Care is allowed to make

Question 24

The Federal Trade Commission (FTC) receives numerous complaints that a Renewal Subscriptions Inc. ad is deceptive. The FTCs first step is to

Group of answer choices

draft a formal complaint.

investigate the complaints.

issue a cease-and-desist order.

refer the complaints to the U.S. Department of Justice.

Question 25

Whole Grains Company wants to make and market new processed bread and cereal products. On each products label, standard nutrition facts are

prohibited.

required.

voluntary.

discretionary, it is Whole Grains choice to follow the law.

Question 26

Creamery Inc. makes and sells dairy products. Creamerys product packages must include

the company owners private information.

information on the net quantity of its contents.

the restaurants and stores in which the product is sold.

the type of consumer most likely interested in the product.

Question 27

Value Loan Company extends credit to consumers. Value Loan applies a variety of requirements to determine applicants qualifications. Under the Equal Credit Opportunity Act, the lender cannot base its credit decisions on an applicants

income and assets

credit score

credit history.

gender.