The FTC

question 56

Multiple Choice

The FTC:

• A) and an advertiser can enter into a consent decree to force the advertiser to both stop the running of the advertisement and to publicly admit its advertisement was deceptive.
• B) can order a false or misleading advertisement to be stopped through a "cease and desist order," but cannot require the violator to correct its advertising.
• C) can fine an advertiser for running a misleading advertisement if it fails to comply with its order to "cease and desist."
• D) All of these are correct.

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Definitions:

Par

The face value of a bond or the stock value stated on the certificate, unrelated to its market value.

State Charter

A legal document issued by a state that grants rights, privileges, and operating terms to a corporation.

Authorized Stock

This refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of stock in the market.