If Company a Engages in False Advertising That Lures Customers

question 472

Multiple Choice

If company A engages in false advertising that lures customers away from company B, and company B sues, under the Lanham Act it may collect:

• A) the value of damage to its trademark reputation
• B) the value of profits lost due to the false advertising
• C) double the value of profits lost due to the false adverting
• D) treble the value of profits lost due to false advertising
• E) none of the other choices; the Lanham Act does not apply in such cases

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Definitions:

Variable Input(s)

Inputs or resources whose quantity can be changed in the short term to adjust the level of production.

Short Run

A period in economics where at least one factor of production is fixed, limiting the adjustments a firm or industry can make.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Output

The total amount of goods or services produced by an individual, firm, or country over a specific period.