A Misrepresentation or Material Omission That Is Likely to Mislead

question 64

True/False

A misrepresentation or material omission that is likely to mislead a consumer to the consumer's detriment is grounds for a claim of deception under FTC rules.

---

Definitions:

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.

Target Sales Volume

The specific quantity of products a company aims to sell within a certain period to achieve its sales objectives and ensure profitability.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including items like rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, which contributes towards covering fixed costs and generating profit.