Case s ummar y:A company POM is making and selling pomegranate-based products. The company in ads claimed that it will prevent or reduce heart disease and cancer on daily consumption. Federal Trade Commission(FTC) charged the company for misleading and misrepresentation ads. The company was barred for future ads and affirmed that other advertisements of the company are deceptive. The court affirmed that the benefits in its product required Randomized Controlled Trials result. The court ordered that benefits in Ads should be supported by the evidence to the consumer in a non-misleading way.
To find:The validity of arguments advanced by the company POM.
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Chapter 24 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- Walker Manufacturing uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,800,000, and its estimated level of activity was 60,000 direct labor-hours. The company's direct labor wage rate is $15 per hour. Actual manufacturing overhead amounted to $1,720,000, with actual direct labor cost of $930,000. For the year, manufacturing overhead was_.arrow_forwardNeed answerarrow_forwardNonearrow_forward
