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:

• A) puffery.
• B) unethical advertising.
• C) deceptive advertising.
• D) an ethical dilemma.
• E) non-competitive advertising.

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Definitions:

Foreign Exchange Risk

The potential for financial loss due to fluctuations in the exchange rate between two currencies.

Import Purchase

The act of buying goods and services from a foreign country to be brought into the buyer's home country.

Foreign Currency

Money or other form of payment issued by a government other than the home country of the business or individual.

Appreciates

Refers to an increase in the value of an asset over time, often influenced by market dynamics or enhancements to the asset.