When an Enterprise Has Made False and Deceptive Statements in Advertising

question 32

Multiple Choice

When an enterprise has made false and deceptive statements in advertising, the FTC may require new advertising to correct the former statement so that consumers are aware of the truth. This corrective advertising required by the FTC is also called __________ advertising.

• A) retractive
• B) redactive
• C) retroactive
• D) refractive

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Definitions:

Duty

A moral or legal obligation; a responsibility that one is required to perform in a social, legal, or professional context.

Performance

The execution of duties or actions stipulated by a contract.

Third Party

An entity involved in a transaction or legal situation who is neither the first (often the buyer or claimant) nor the second (often the seller or defendant) principal party.

Express Condition

A specific and explicitly stated requirement in a contract that must be met for contractual obligations to be fulfilled.