Which of the Following Is Not a Basis for an Unfair

question 48

Multiple Choice

Which of the following is not a basis for an unfair competition claim under Section 5 of the Fair Trade Commission Act?

• A) The action violates a provision of the Sherman Act.
• B) The action violates the "spirit" of the antitrust laws.
• C) The action allows the party to earn excessive profits.
• D) The action violates public policy.
• E) The action is oppressive or unscrupulous.

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Definitions:

Par Value

Refers to the face value of a bond or the stock value stated in the corporate charter, establishing a minimum price per share for stocks issued.

Dividend Income

Income received from owning shares of a company that pays dividends, representing a portion of the company's profits distributed to shareholders.

Growth Rate

The rate at which a company's sales, earnings, dividends, or other key metrics increase over a specified period of time.

Transaction Costs

Expenses incurred when buying or selling securities, including broker's fees, commissions, and taxes, which can affect the overall profitability of an investment.