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Author Question: A weight-loss ad claims, Lose up to five pounds per week. Is this statement a basis for ... (Read 106 times)

SO00

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on: Jun 24, 2018
A weight-loss ad claims, Lose up to five pounds per week. Is this statement a basis for misrepresentation?

Question 2

A director who usurps a corporate opportunity:
 A) will owe his/her corporation the profits from the opportunity.
 B) will not owe the profits to the corporation so long as the venture was disclosed in advance.
 C) has violated the business judgment rule.
 D) None of the above


pikon

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Reply #1 on: Jun 24, 2018
Answer to Question 1

Yes, the statement could be a basis for misrepresentation, but it is open-ended enough that there may not be any action against the company for making it. The statement does not guarantee five pounds per week - it is only up to. If anything, the statement is only placing a maximum on weight loss.

Answer to Question 2

A


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