Question

Scenario43
The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a wellknown sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning RodThe Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC.
The FTC investigates the claim of "20 percent more casting distance" when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. However, the FTC rules that Castaway Sports should stop airing the ads, and in response the Lightning Rod advertisement was removed. This is an example of a(n):
a. dissolution.
b. cease-and-desist order.
c. consent order.
d. appropriation.

Answer

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