When the FTC Tried to Sue a Company for Scams

question 207

Multiple Choice

When the FTC tried to sue a company for scams advertised on the Internet:

• A) the appeals court held the FTC had no jurisdiction on Internet commerce
• B) the appeals court held that there could be no suit because of First Amendment rights
• C) the appeals court held that there could be no suit because jurisdiction over the Internet belongs to the Federal Communications Commission, not the FTC
• D) the appeals court held that there could be no suit because this exceeded the powers of the agency; Congress would have to amend the FTC Act
• E) none of the other choices

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Definitions:

Derivative Instruments

Financial contracts whose value is derived from the value of an underlying asset, index, or interest rate.

Primary Instruments

The basic securities in the financial market, such as stocks and bonds, that are traded directly between entities.

AASB 9

An Australian Accounting Standards Board regulation that addresses the classification, measurement, and recognition of financial assets and financial liabilities.

Trade Debtors

Individuals or entities who owe money to a company from goods or services provided on credit.