Your company sells a \"Navy Seals\' Watch.\" You advertise the watch on TV by sh

Question

Your company sells a "Navy Seals' Watch." You advertise the watch on TV by showing a military operation with men in camouflage clothing landing on a beach. The leader of the operation looks at his watch and says: 0600, perfect timing from a watch I know I can trust: the U.S military has a division called the Navy Seals that is famous and well respected. Your company has no connection to Navy. A customer buys your watch and complains when he finds out the watch is not waterproof and that no U.S. Navy Seal uses the watch. Is your ad illegal under consumer protection law?

a. No, because a reasonable consumer understands that we live in a "buyer beware" environment where sellers are allowed to make questionable claims.

b. Yes, because in no case can you show military type images in advertising without the authorization of the FTC under the Lanham Act.

c. Yes, because the ad combined with the name misleads a reasonable" consumer into thinking the U.S. Navy has endorsed the watch and that it's waterproof .

d. No, because the ad is a dramatization and a Navy Seal could someday use the watch.

Each member of a certain organization agrees to give other members the most favorable treatment with regard to imports or exports. This organization is:

a. the International Export-Import Bank.

b. The convention on Contracts for the International Sale of Goods.

c. the World Trade Organization.

d. the United Nations.

You manufacture a children's toy and received three complaints that the toy seriously injured a child. Select the answer that provides the most likely and legally correct outcome.

a. You pay the families damages and ask for a confidentiality agreement as part of the settlement to keep the word from getting out on your product.

b. You inform the Federal Trade Commission about the problems and consider what action you should take pending an FTC order.

c. You wait to see if anyone else gets injured and report to the FTC when the problem is clearly a problem.

d. You immediately take all the product off the shelf, but do not inform the FTC and existing customers because the number of injuries was very limited compared to the number of products sold

Senator Wyden and other politicians want to limit the flow of technologically advanced products and data from the United States to other countries. To carry out this objective, Congress can

a. impose export restrictions on these products.

d. do nothing

c .assess antidumping duties.

d .impose export taxes.

Explanation / Answer

Question:- Your company sells a "Navy Seals' Watch." You advertise the watch on TV by showing a military operation with men in camouflage clothing landing on a beach. The leader of the operation looks at his watch and says 0600, perfect timing from a watch I know I can trust: the U.S military has a division called the Navy Seals that is famous and well respected. Your company has no connection to Navy. A customer buys your watch and complains when he finds out the watch is not waterproof and that no U.S. Navy Seal uses the watch. Is your ad illegal under consumer protection law?

Answer:- c. Yes, because the ad combined with the name misleads a reasonable" consumer into thinking the U.S. Navy has endorsed the watch and that it's waterproof.

Reason:- This case is a typical example of misleading names and depiction of product usages and its features. As the name of the brand is Navy Seals and the advertisement shows that watch is being used by men in camouflage clothing landing on a beach, this entire scene creates an image that the watch is a waterproof product endorsed by the Navy Seal which can mislead a normal customer.

Question:- Each member of a certain organization agrees to give other members the most favourable treatment with regard to imports or exports. This organization is:

Answer:- c. the World Trade Organization.

Reason:- WTO is an organization in which the member countries have to provide most favourable treatment to other country if they also receive the same status as far as exports and imports is concerned.

Question:- You manufacture a children's toy and received three complaints that the toy seriously injured a child. Select the answer that provides the most likely and legally correct outcome.

Answer:- b. You inform the Federal Trade Commission about the problems and consider what action you should take pending an FTC order.

Reason:- As FTC is a federal agency taking care of consumer protection, thus the incident should be reported to FTC and whatever recommendations are provided by FTC should be discussed and implemented in order to avoid any kind of severe actions against the company by FTC in future.

Question:- Senator Wyden and other politicians want to limit the flow of technologically advanced products and data from the United States to other countries. To carry out this objective, Congress can

Answer:- a. impose export restrictions on these products.

Reason:- By having the export restrictions or export quotas, the country can regulate the number of products exported to other countries.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.