The Merex 200E is a new sports coupe designed to appeal to the highest bracket of consumer. Each coupe costs at least $100,000 . Mitch is a young stockbroker in Toronto who notices the Merex 200E from an ad in the subway. It says, "0 to 60 in 2 seconds." Mitch sees the Toronto Merex dealer, takes the car out for a test spin, but does not have an opportunity to test the acceleration. The salesman assures him that the acceleration promised in the advertisement has been verified by an independent testing agency. Mitch, relying on the salesman's pitch, buys a hot red 200E and tries several times to take the car up to 60 mph in 2 seconds, but with no success. Moreover, he discovers that the engine stalls dangerously when accelerating rapidly. Which of the following is most likely TRUE?
A) Merex could be prosecuted for the offence of misleading advertising, but only by the Commissioner of Competition.
B) If Merex were prosecuted for the offence of misleading advertising, it could rely on a defence of due diligence since it had retained an independent testing agency that had verified the promised acceleration.
C) Merex could not be prosecuted for misleading advertising because accelerating so quickly is dangerous.
D) Merex could not be prosecuted for the offence of misleading advertising.
E) None of the above.
Correct Answer:
Verified
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