Soundbyte Corporation Sells Phones

question 10

Multiple Choice

Soundbyte Corporation sells phones. Soundbyte's ad states that on its phones voice comes through as "clear as the sky on a cloudless day." The Federal Trade Commission would consider this claim

• A) false and misleading.
• B) impermissibly vague and general.
• C) a deceptive half-truth.
• D) puffery that is allowed.

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Definitions:

Trans-Pacific Partnership

A trade agreement among multiple Pacific Rim countries aimed at deepening economic ties, reducing tariffs, and fostering trade to boost growth.

Infant Industry Argument

A protective economic theory suggesting that emerging domestic industries should be shielded from foreign competition until they become competitive.

Tariff

A tax imposed by a government on imported goods to protect domestic industries or raise revenue.

Domestic Market

The market within a country where goods and services are traded domestically.