Question

The Wheeler-Lea Act of 1938 __________.a. made interlocking directorates illegal. b. made monopolization of trade a misdemeanor. c. empowered the FTC to deal with false and deceptive acts or practices. d. set up the Federal Trade Commission (FTC) to deal with "unfair methods of competition." e. prohibited suppliers from offering special discounts to large chain stores without offering them to everyone else.

Answer 1

ANSWER: (D) EMPOWERED THE FTC TO DEAL WITH FALSE AND DECEPTIVE ACTS OR PRACTICES

EXPLANATION: The United States in 1983 amended Section 5 of the Federal Trade Commission Act (FTCA) by the enactment of the Wheeler–Lea Act.

Furthermore, the Wheeler–Lea Act was enacted to proscribe "unfair or deceptive acts or practices" in the commerce.

Lastly, the Wheeler–Lea Act provided civil penalties for the violators of the Section 5 of the FTCA, and also empowered FTC to protect consumers from false advertising practices in the state.

Answer 2

Answer:

c. empowered the FTC to deal with false and deceptive acts or practices.

Explanation:

The Wheeler-Lea Act of 1938 is the act passed which by the United States of America inorder to proscribe unfair competitions or unfair practices in any business endeavor being engaged in. This was promugulated inorder to prevent false business practices.

For example, in the area of false or misleading advertisement of a new drugs, it is expected that the business entity would be prosecuted in the court of law if found guilty to have violated this law.