Which of These Is Most Likely to Be Attacked by the FTC

question 174

Multiple Choice

Which of these is most likely to be attacked by the FTC as a deceptive business practice?

• A) selling stock to investors in a company for three times its true value
• B) charging 25% interest on consumer loans when the market rate of interest is 10%
• C) selling original art to consumers at prices significantly above market value
• D) telling consumers that a brand of jeans is special and selling them for double what other jeans sell for, when they are the same as other jeans except for the name
• E) none of the other choices

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Definitions:

Contractual Obligation

A contractual obligation is a duty or responsibility recognized by law that arises out of a contract agreement between parties.

Breach Of Contract

The failure of one party to fulfill the terms agreed upon in a contract, potentially leading to legal action for remedies.

Negotiate

The process of discussing something to reach an agreement or compromise.

Additional Benefits

Supplemental compensations or perks provided by employers beyond basic salary, including health insurance, retirement plans, etc.