Which of the Following Is Not Required of a Consumer

question 87

Multiple Choice

Which of the following is not required of a consumer harm that is challenged under Section 5 of the FTC Act?

• A)The harm must be one where a consumer had a significant monetary loss
• B)A substantial harm
• C)The harm must not be outweighed by any offsetting consumer or competitive benefits produced by the challenged products
• D)A harm must be one that consumers could not reasonably have avoided

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Definitions:

Net Price Method

The net price method accounts for purchases after subtracting discounts, essentially calculating the actual price paid for goods or services after all reductions.

Purchase Discounts Lost

The extra cost incurred by a company for not taking advantage of the discounts offered by suppliers for early payments.

Catalog Price

The price of an item as listed in a catalog, which may be subject to discounts based on various sales promotion strategies.

Perpetual Inventory System

An accounting method where goods are recorded as sold immediately through the use of computer systems, providing a continuous record of inventory.