If a Business Files a Complaint with the NAD of the Council

question 152

Multiple Choice

If a business files a complaint with the NAD of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will:

• A)issue a cease and desist order if it finds the ad is indeed deceptive and misleading.
• B)investigate the ad to determine if the FTC Act has been violated.
• C)collect information and evaluate data concerning the complaint to determine if the advertiser's claims can be substantiated.
• D)refer the case to the Federal Trade Commission since it involves a business filing the complaint.

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Definitions:

Tender Offer

A public, open offer or invitation (usually made by a company) to all shareholders to sell their shares at a particular price during a specified time.

Proxy Contest

A competition for the control or influence over a company by requiring shareholders to vote by proxy.

Shareholder Votes

The process by which shareholders exercise their right to make decisions on corporate matters, typically exercised during annual general meetings.