Question

Pesky, Inc. employs numerous sales representatives who attempt to sell the company's products door-to-door. All of the products sold in this manner are designed for use in the home. They range in price from $29.95 to $149.95. Each Pesky sales representative has been instructed to provide customers the address from which warranty information about Pesky's products may be obtained. The sales representatives give customers this address before the sale of any product takes place. The FTC has sued Pesky in federal court, requesting appropriate injunctive relief on the theory that Pesky's practices (as just described) do not comply with the Magnuson-Moss Act and its implementing regulations. Is the FTC's position correct? Explain.

Answer

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