Brownie Inc and Chewy Ltd Are Competitors in the Chocolate

Multiple Choice

Brownie Inc and Chewy Ltd are competitors in the chocolate bar market.Brownie has developed a four-part strategy in an effort to win the "trade war" with Chewy.First, Brownie's advertisements falsely claim that its product are calorie-free.Second, those advertisements also state that Chewy's products are manufactured from third-rate ingredients.Third, those advertisements also say that Chewy's products are proven to cause cancer.And fourth, Brownie occasionally packages its products in such a way as to make consumers believe that they are buying Chewy products.Which of the following statements is TRUE?

A) If Brownie's products are not calorie free, Brownie will be held criminally liable for misleading advertising.
B) Brownie may be held liable for injurious falsehood if Chewy's products are not made from third-rate ingredients, if Brownie's statement to the contrary was made maliciously, and if Chewy suffered a loss of sales as a result of that statement.
C) If Chewy's products do not cause cancer, Brownie may be held liable under the tort of deceit as long as it should have known that its statement was false.
D) The court will find a crime was committed every time that Brownie packaged its products to trick customers into thinking that they were actually buying Chewy's products.
E) Brownie cannot be held liable for injurious falsehood unless it knew that it was committing a tort when it made a particular statement.