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:

Selling and Administrative Expense Budget

An estimation of the costs related to sales and administrative activities for a specific period, used for planning and control.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services.

Direct Labor

The wages and benefits paid for labor that is directly involved in the production of goods or the provision of services.

Variable Selling

This term likely refers to variable selling expenses, which are costs that fluctuate with sales volume, such as commissions or shipping fees.