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Fatty's Fish Fry shop was caught disseminating false advertising when it made a claim that its main competitor was selling fish laced with poison and

Fatty's Fish Fry shop was caught disseminating false advertising when it made a claim that its main competitor was selling fish laced with poison and mercury. Which of the following is true?

  • Fatty's can only be enjoined from making false statements about its competitor.
  • Fatty's can be stopped from making false claims and may be sued by the injured competitor.
  • Fatty's is guilty of failure to disclose.
  • Fatty's can only be sued on criminal charges by its competitor under the Lanham Act.

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