A Judge Has Determined That Billy's Widgets Has Engaged in Deceptive

question 66

Multiple Choice

A judge has determined that Billy's Widgets has engaged in deceptive advertising and the FTC has issued a cease and desist order.Billy's Widgets disagrees and believes its advertising is appropriate.What should Billy's Widgets do?

• A)Appeal the decision to the five commissioners of the FTC
• B)Continue the advertising anyway because the FTC cannot actually take any action
• C)Continue the advertising and file a First Amendment lawsuit in state court.
• D)Stop the advertising because the judge's ruling was the final word on the matter
• E)Negotiate a consent order with the FTC.

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Definitions:

Anticompetitive Effects

Refer to actions or outcomes that reduce competition in a market, leading to less consumer choice and possibly higher prices.

Lawful

Conforming to, permitted by, or recognized by law and regulations.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 that prohibits monopolistic practices and promotes competition.

Market Power

Refers to the ability of a company or entity to influence the price and output levels in a market.