New Colt Holding Corporation advertises its Model P single-action revolver as “t
ID: 384787 • Letter: N
Question
New Colt Holding Corporation advertises its Model P single-action revolver as “the gun that won the west.” Competitors have filed suit for false advertising because historical significance is important to gun purchasers and such false claims would draw away customers Also, its competitors argue that the Winchester 73 rifle is actually the gun that won the west. Is this false advertising? Analyze the statement and determine whether it is an express warranty. Also, determine if the FTC would deem the claim to be false or deceptive advertising.
Explanation / Answer
The allegations raised by the competitor firm against New Colt Holding Corporation are absolutely correct. As this is a clear situation of a false advertising since New Colt Holding Corporation has made a false claim and advertised its product Model P single-action revolver as the best in its category which can fool the consumers purchase the product which might not live up to their potential.
This is not an express warranty as the seller has only advertised its product Model P single-action revolver as its best brand and it is not mentioned in the offering about warranty details for the product. Hence it is not an express warranty.
Finally, yes! The Federal Trade Commission (FTC) would deem the claim of New Colt Holding Corporation claim about Model P single-action revolver where it mentioned its brand as “the gun that won the west” to be a deceptive advertising for the reasons mentioned in the first paragraph.