Which of the Following Statements About the Use of Puffery

question 26

Multiple Choice

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

• A)Puffery is a sales presentation that praises the item to be sold based on objective opinions.
• B)Puffery was banned in a 1996 revision of the Uniform Commercial Code.
• C)According to the Federal Trade Commission, consumers believe in puffery.
• D)Superlatives such as greatest, best, and finest are puffs that are often used in advertising.
• E)Puffery is illegal only if it eliminates a competitive advantagE.Puffery has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts." Superlatives such as greatest, best, and finest are puffs that are often used.

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Definitions:

Frozen Meal

A pre-cooked, packaged meal that is frozen and can be reheated for consumption, offering convenience and a quick meal option.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for slight differentiation and some price control.

Elasticity

A measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants.

Signaling Theory

A concept that suggests that individuals send signals about their qualities or intentions through their actions or investments, which others then interpret to make decisions.