Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires.The company must conduct careful studies to provide support for the claim because:

Question

Quizplus · Accepted Answer

This answer states that Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. The Lanham Act is a federal law that regulates trademarks, service marks, and unfair competition. Competitors who believe that Acme's claim is false or misleading may bring a lawsuit against the company under the Lanham Act. Therefore, Acme must conduct careful studies to provide support for the claim to avoid potential lawsuits under the act.

Acme Tire Is Developing an Advertising Campaign That Will Claim