Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LabTest Products, Inc., advertised that its weight - loss supplement, Drop - It , would cause users to lose weight quickly. The ad claimed that

LabTest Products, Inc., advertised that its weight-loss supplement, Drop-It, would cause users to lose weight quickly. The ad claimed that users could lose as much as fifteen pounds per week without dieting or exercising.In fact, to lose that much weight so fast, an individual would have to run fifty to seventy miles every day.Was LabTest's ad for Drop-It deceptive? Yes. Deceptive advertising occurs if a reasonable consumer would beby the advertising claim.vague generalities and obvious exag-gerations that a reasonable person would not believe to be literally trueare permissible. When a claim appears to be based onevidence, but the claimcannot be scientifically supported, the claim is deceptive.Here, LaTest's ad cannot be supported by fact. It is false and2. Greta obtained an auto loan from Ridgeline Bank, but the bank did not give her a payment schedule and refused her attempts to make payments. In fact, Ridge-line told Greta that it had not given her a loan. When the bank discovered its mistake, it demanded full pay-ment. When payment was not forthcoming, Ridgeline declared Greta in default, repossessed her car, and forwarded adverse credit information about her to credit reporting agencies without noting that she disputed the information.Did Ridgeline violate the Fair Credit ReportingAct? Yes. The Fair Credit Reporting Act protects consumers againstcredit reporting. Here,Ridgeline forwarded adverse credit information about Greta to credit reporting agencies without

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of General Management In Africa

Authors: Lemayon Lemilia Melyoki, Betty Jane Punnett

1st Edition

0367435195, 978-0367435196

More Books

Students also viewed these General Management questions