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Safeway, a U

question 34

Multiple Choice

Safeway, a U.K.-based supermarket chain, was reprimanded by a government agency in the United Kingdom because it distributed a leaflet titled "More reasons NOT to shop at Morrisons." (Morrisons is one of Safeway's primary competitors in the U.K.) . In the leaflet, Safeway depicted two shopping receipts, one for Safeway and one for Morrisons. The Safeway receipt claimed goods purchased at Safeway were much cheaper than the same goods purchased at Morrisons. Morrisons said that the goods on the imaginary receipt were not typical purchases and that the reason they were cheaper on the Safeway receipt was because the goods were on sale in the Safeway store. The FTC would have most likely found Safeway guilty of:

Definitions:

Sell

The act of disposing of an asset or security in exchange for cash or another financial instrument.

Margin

The amount of equity contributed by an investor as a percentage of the current market value of the securities held in a margin account.

Marked To Market

A method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities, by updating them to their current market values.

Good-Faith Deposit

A sum of money provided as a sign of commitment or seriousness, often used in transactions like real estate purchases to secure a deal before finalizing.