Pursuing criminal penalties


Assignment:

Question 1. JKL has a product for elderly individuals who are on their own, who might have a safety or health issue. The product ads indicate that the device, when activated, makes direct contact with emergency personnel, and provides them with the location of the elderly person. However, in actuality, there is an intermediate system of monitors who must notify emergency personnel. The Federal Trade Commission:

  • can pursue criminal penalties against JKL
  • has the authority to issue an injunctive cease and desist order for JKL's ads based upon the perception that there is direct contact with the law enforcement/emergency providers
  • as JKL is merely exercising its constitutional free speech rights, has no authority to take action against the ads
  • none of the above

Question 2. A customer notices a worm on his/her spoon while eating a cup of chili. The customer might most likely recover under the theory of:

  • implied warranty of fitness for a particular purpose
  • negligance
  • implied warranty of merchantability
  • an express warranty
  • none of the above, as there was no privity

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Business Law and Ethics: Pursuing criminal penalties
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