Which of the Following Statements About the Use of Puffery

question 13

Multiple Choice

Which of the following statements about the use of puffery in advertising is true?

• A)Puffery is illegal.
• B)Puffery was recently banned in a 1996 revision of the Uniform Commercial Code.
• C)It is easy for consumers to distinguish between puffery and factual claims.
• D)Advertisers right to use puffery was supported in a 1996 revision of the Uniform Commercial Code.
• E)Puffery is only illegal if it eliminates a competitive advantage.

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Definitions:

Net Income

A company's profit margin following the removal of all operational costs and taxes from its revenue.

Total Stockholders' Equity

The total amount of funds contributed by shareholders and retained earnings within a company.

Total Liabilities

The total of all financial obligations owed by a business to creditors, including loans, accounts payable, and other debts.

Retained Earnings

The portion of a company's profits that are not distributed as dividends to shareholders but are kept by the company for reinvestment.