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Rely Battery Corporation makes batteries for motor vehicles. 

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Rely Battery Corporation makes batteries for motor vehicles. 

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Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck’s Automotive Stores, a retail company that sells Rely’s batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck’s?

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Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo.

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Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo.

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Estimable obtains an insurance policy from Grangers Insurance, Inc., to cover the silo. Farmland also obtains a policy from Grangers to cover the silo. Later, Farmland sells the silo to Hi-Yield Harvest Company but keeps the policy. Hi-Yield also obtains a policy from Grangers to cover the silo. Estimable agrees to finance Hi-Yield’s purchase of the property. A fire totally destroys the silo. Who can recover for the loss?

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Gene leaves her Honda Fit with In-Town Motors for routine maintenance.

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Gene leaves her Honda Fit with In-Town Motors for routine maintenance.

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On its return, the interior of the car is greasy, and the exterior is scratched and dented. Who suffers the loss, and why?

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Mouth-Waterin’ Treats Company wants to sell its candy in a normal-sized package labeled “Gigantic Size.”

NuFabrics, Inc., wants to advertise its sweaters as having “That Wool Feel,” but does not want to specify on labels that the sweaters are 100 percent polyester.

Can these firms market their products as they would like? If not, why not?

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Andrew, a California resident, received a mail advertisement from Every-Kind Cookbook Co. for a new line of regional cookbooks and discarded it. Two days later, the company mailed him a Lower Mongolian Regional Cookbook on a trial basis. Uninterested, Andrew kept the book and did not return it. Every-Kind later demanded payment of $20.95 for the cookbook.

Discuss whether Andrew can be required to pay for the book.