The Insecto Co.advertised on television its product,the "Fly-Bye," a sheet of sticky paper that attracted and then glued flies to its surface.The advertising claimed that the product would catch up to 100 flies per hour for six hours or the purchase price of $9.99 would be refunded.

Question

Quizplus · Accepted Answer

Choice B is correct as the Insecto Co. may be prosecuted under the Competition Act if one local distributor were selling Fly-Byes for $10.99 because it is considered as price discrimination, which is against the Competition Act.

Choice D is also correct as the hardware store must provide shoppers with a rain cheque if it mistakenly did not order enough goods. This is because the advertisement of a two-day promotion has created an obligation for the hardware store to fulfill the demand of customers who rely on the promotion.

Therefore, the correct answer is E.