A Carpet Cleaning Firm Runs a Newspaper Ad Stating: "Special

question 150

Multiple Choice

A carpet cleaning firm runs a newspaper ad stating: "Special this month only! Three rooms of carpet cleaned for $39.95!" In each of the next ten months, the firm runs the same ad. A consumer advocacy group files suit against the carpet cleaning firm, contending that the ad is deceptive. The suit charges that the ad makes it seem as though the $39.95 price is a special price that will increase at the end of the month, when in reality, the price never changes. The U. S. federal law governing this type of situation is the:

• A) Robinson-Patman Act.
• B) Clayton Act.
• C) Sherman Act.
• D) Magnuson-Moss Act.
• E) Wheeler-Lea Amendment.

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Definitions:

Tariffs

Taxes imposed by a government on goods and services imported from other countries, used to control trade, raise government revenue, or protect domestic industries.

Import Quotas

Import Quotas are government-imposed limits on the quantity of certain goods that can be imported, aiming to protect domestic industries.

Debt Relief

A measure or a set of measures aimed at reducing or restructuring the debt of an individual, corporation, or nation to alleviate financial burden.

Foreign Aid

Economic, technical, or military assistance given by one country to another for the purpose of relief and rehabilitation, economic stabilization, or mutual defense.