Section 5 of the FTC Act Normally Is NOT Violated

question 19

Multiple Choice

Section 5 of the FTC Act normally is NOT violated when sellers make:

• A) false statements about legal regulations.
• B) deceptive omissions from their advertisements.
• C) false or misleading claims of an implied nature.
• D) claims regarding taste or smell of their products.

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Definitions:

Trade Discount

A reduction in the price of goods or services offered by a seller to a buyer in the business-to-business market.

Discount Series

A sequence of discounts applied one after the other to reduce a product's price or to calculate the present value of a stream of future payments.

Invoice Notation

Symbols or codes used on an invoice to provide specific information about the transaction or goods involved.

Discount Rate

An interest rate charged to commercial banks and other depository institutions for loans received from a country's central bank's discount window.