The Ether Store Inc Is Trying to Break into the Potentially

question 63

Multiple Choice

The Ether Store Inc is trying to break into the potentially lucrative world of online retailing.Given the competitive nature of the field,it believes that the key to success is advertising and promotion.It therefore has asked you to review and assess several proposals that it has developed.Which of the following statements is TRUE?

• A)Because it is considered relatively less harmful than other sorts of offences,misleading advertising is always treated as a civilly reviewable matter under the Competition Act
• B)Misleading advertising is not committed under the Competition Act unless the court is satisfied that at least one customer was actually misled.
• C)Although there have been calls for reform,the Competition Act does not yet regulate telemarketing.
• D)Deceptive telemarketing is an offence.
• E)A due diligence defence is never available in connection with advertising offences.

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Definitions:

Agricultural Futures

Contracts to buy or sell agricultural commodities, such as wheat, corn, or soybeans, at a predetermined price on a specified future date, used for hedging or speculative purposes.

Pork Bellies

Futures contracts that were historically traded on the commodity exchanges, representing 40,000 pounds of frozen, trimmed bellies of hogs, which are used to make bacon.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding a position, set by a brokerage to prevent excessive borrowing based on volatile market values.

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.