Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 14

Cars 4 Causes was a nonprofit corporation that solicited donations of cars that it sold from its lot. It kept half the sales proceeds and after deducting towing costs, it distributed the remainder to charities. Cars 4 Causes advertised that it provided "free towing" of a vehicle from the donor's residence. Its advertising did not disclose that in fact it paid a fee to a towing company and deducted that fee from the portion of the sales proceeds it gave to charities. The state of California and its Department of Motor Vehicles sued Cars 4 Causes, alleging that it engaged in false advertising. Did it?