Occasionally the FTC Bypasses Its Typical Process and Uses the Court

question 80

Multiple Choice

Occasionally the FTC bypasses its typical process and uses the court system to stop an unfair marketing practice. Of the following, which would be the most likely to trigger this type of action?

• A)A company violates an FTC cease and desist order
• B)A full commission of the FTC is not available to hear a case
• C)A company violates a consent order
• D)A company appeals a consent order

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Definitions:

Capital Contributions

Investments made by owners or shareholders into a company or partnership, increasing the company's equity.

Defendant-Tippee

A term used in securities law referring to a person who receives non-public, material information from an insider (the tipper) and then trades securities based on that information.

Criminally Liable

Being legally responsible for a crime, subject to criminal prosecution, and potentially, punishment.

Mens Rea

A legal principle that considers the intent of the mind to commit a crime; essential for establishing criminal liability.