Which of the following is an example of an unfair trade?
Asked by: Concepcion Stark | Last update: April 20, 2025Score: 4.4/5 (38 votes)
Unfair business practices include misrepresentation, false advertising or representation of a good or service, tied selling, false free prize or gift offers, deceptive pricing, and noncompliance with manufacturing standards.
What is an example of an unfair trade?
Some examples of unfair trade methods are: the false representation of a good or service; false free gift or prize offers; non-compliance with manufacturing standards; false advertising; or deceptive pricing.
What are unfair trades?
Unfair trade practices are practices that grossly deviate from good commercial conduct and are contrary to good faith and fair dealing. 1 Unfair trading practices are typically imposed in a situation of imbalance by a stronger party on a weaker one, and can exist from any side of the B2B relationship.
Is an example of an unfair trade practice an agent?
Explanation: An example of an unfair trade practice in the insurance industry could indeed be an agent making a material misrepresentation to the insured.
Which of the following is an example of an unfair trade practice of rebating?
Final answer: An example of a producer engaging in an unfair trade practice of rebating is when they induce the insured to drop a policy for another one that is not in the insured's best interest.
Unfair Trade Practices under Consumer Protection Act 2019, consumer protection class 12, mba, bba
What is considered unfair trade?
Unfair trade practices refer to businesses using deceptive, fraudulent, or otherwise unethical methods to gain an advantage or turn a profit. Consumer Protection Law, as well as Section 5(a) of the Federal Trade Commission Act, protects consumers from unfair business practices.
Is rebating an unfair trade practice?
Under the Model Act, the rebating practice of splitting insurance commissions with the consumer to induce a sale is classified as both an unfair method of competition and an unfair or deceptive act or practice in the business of insurance.
What is an example of an unfair trade practice quizlet?
An example of an unfair trade practice is? An agent making a material misrepresentation to the insured. (Making a material misrepresentation to an insured is considered to be an unfair trade practice.)
What is not considered an unfair trade practice?
Final answer: Sharing commissions with agents who have equivalent licenses is not considered an unfair trade practice. Unfair trade practices primarily include fraudulent actions like misrepresentation or falsehoods. The FTC monitors these practices to protect consumers.
Which of the following unfair trade practices involves?
The unfair trade practice that involves an agent making malicious statements about another person's financial condition is known as Defamation. This practice can damage a person's or company's reputation and can lead to legal action.
What is an unfair trading practice?
Unfair trading includes a trader making misleading statements, leaving out important information about a product or behaving aggressively.
How do we know if something is fair trade?
The FAIRTRADE Mark is a registered certification label for products sourced from producers in lower income countries. The Mark is used only on products certified in accordance with Fairtrade Standards and on promotional materials to encourage people to buy Fairtrade products.
Which unfair trade practice involves an agent telling a prospective client?
Explanation: The Unfair Trade Practice which involves an agent telling a prospective client that a policy's dividends are guaranteed is known as Misrepresentation.
What is an example of an unfair act or practice?
Acts or practices that have the potential to be deceptive include making misleading cost or price claims; using bait-and-switch techniques; offering to provide a product or service that is not in fact available; omitting material limitations or conditions from an offer; selling a product unfit for the purposes for ...
What is fair trade and unfair trade?
Fair trade When trade is fair people are able to earn enough money to live and improve their lives. Fair trade happens. when countries agree to buy goods at fair prices from companies that pay workers fairly and treat them well. Unfair trade. Low wages.
Which of the following is considered an accurate statement of an unfair trade practice?
Explanation: An accurate statement of an unfair trade practice among the options provided is b) Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company.
What can trade be unfair?
Unfair trade practices include false representation of a good or service, targeting vulnerable populations, false advertising, tied selling, false free prize or gift offers, false or deceptive pricing, and non-compliance with manufacturing standards.
What is an unfair trade practice violation?
The California Unfair Practices Act, beginning at Section 17000 of the California Business & Professions Code, prohibits unfair competition and “any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.” A merchant who violates the Unfair Practices Act can be ...
What are examples of fair or unfair practices?
Using data lawfully and professionally, as well as guaranteeing its quality and dependability, are fair practices in data analytics. Using data unethically and altering data to obtain biased results are examples of unfair data analytics practices.
What is an example of unfair trade practice?
Some examples of unfair or deceptive trade practices include: Claiming a product is something it is not or performs a task it does not, or substituting an inferior product for the product advertised. Systematically overcharging for a product or service. Failing in good faith to settle insurance claims.
What is an example of a fair trade situation?
What is fair trade and why should we bother? Bananas, coffee, chocolate, tea, flowers, sugar - these are all items we often take for granted and are all examples of Fairtrade products. But did you know that the farmers of these items didn't always get paid a fair deal for their efforts?
Which of the following is an example of the unfair trade practice known as rebating?
A few common examples of insurance rebating include:
An insurance agent accepting a lower commission on an insurance policy so the policyholder can in turn pay a lower premium. Promising discounts on future insurance premiums. Giving valuable gifts or money to clients in order to persuade them to purchase a policy.
Which is not considered an unfair trade practice?
Final answer: The option that is NOT an unfair trade practice is 'A. Guarantying dividends on a participating policy'. This action is legitimate and relates to the expected performance of the policy rather than deceptive practices.
What is rebating?
Rebating is the practice of returning a pre-determined cash or cash equivalent to a consumer following a purchase. Rebates are most commonly used as an incentive for buyers of products rather than services.
Is churning an unfair trade practice?
Churning is both illegal and unethical.