Fact Pattern 19-2 Jayme's Best Produced a New Line of Pasta Sauce (Herbal

question 262

Multiple Choice

Fact Pattern 19-2
Jayme's Best produced a new line of pasta sauce (Herbal Health) , intending for it to have extra nutritional benefits. Using the freshest ingredients, Jayme's added special herbs to the tomato paste and spices, as the herbs are believed by some Tibetan monks to have the power to prevent cancer. Jayme's marketed the sauce in grocery stores and health food stores. Jayme's advertisements said that Herbal Health may help prevent cancer and taste a lot better than the competition. Based on these facts, answer the following questions.
-Refer to Fact Pattern 19-2. If Jayme's ads contend that it is a healthy product and the competitor products are not healthy, and indeed could make you sick, the competitors may:

• A) file a complaint with the FDA requesting that the approval for Jayme's product be suspended.
• B) appeal to the Department of Justice for a grand jury investigation of Jayme's.
• C) determine if a Trade Regulation Rule has been violated that would required the FTC to file suit against Jayme's to cease sales.
• D) sue Jayme's for double damages for the value of profits lost due to Jayme's campaign.
• E) none of the other choices; action must be taken directly by the FTC or FDA against Jayme's.

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Definitions:

Patent Rights

Legal protections granted to inventors or assignees, giving them exclusive rights to use and commercialize their inventions for a certain period.

Double-Declining-Balance

A method of accelerated depreciation where an asset loses value at double the rate of its straight-line depreciation.

Units-Of-Activity

A method for allocating depreciation based on the actual usage, work, or units of production of the asset, rather than passage of time.

Residual Value

The approximate worth of an asset when it reaches the end of its usable life.