Oregon State Law Assignment 2 of 2


Read the following case study and then answer the following multiple choice questions in the Comments Section below.

Case Study:

Bev, one of the owners of S & L Associates, tasks Chet with coming up with some ads to promote new loan products.

Chet recruits his co-worker Fred to brainstorm some concepts for ads. Since they are starting this project in late June, their main ad revolves around the upcoming July 4th holiday. With Bev’s permission, Chet and Fred come up with a new, more patriotic logo for S & L in the new ad – an eagle with fireworks in one talon and money in the other. They want it to resemble a state or federal seal to add a little patriotism to the flyer and enhance their overall theme.

With the big creative hurdle out of the way, Chet delegates the job of filling in the standard information to Fred. The rest of the flyer is pretty standard stuff. Fred includes the interest rate quote of 3.1% (it was actually 3.156%, but he figured the “3.1” looked cleaner), repayment term of the loan in years, APR, and company address.

Meanwhile, spurred on by his burst of ad-making creativity, Chet decides to design some new business cards for himself. He uses the new S & L eagle logo as a faded watermark across the front of the card, with his name and the office address, phone number, and website address front and center.

Fred brings his finished ad flyer to Chet for approval. Chet looks it over and decides it looks great. He tells Fred to take it down to make some color copies there in the office for immediate use. Chet knows a few real estate agents with open houses coming up that could use the ad right away. Once Fred does this, Chet sends the master copies of the ad flyer and his new business card to the print shop they always use.

A week or so later, the print shop courier stops by with boxes of flyers and Chet’s business cards. Everyone in the office is so impressed with Chet’s business cards that they decide to make it a company-wide design.

Also, the few color copies of the ad flyer that Fred made had a pretty significant impact among Chet’s real estate buddies. Two of them sold properties because the ad flyers helped give buyers a fuller picture of the deal from start to finish, and three more had buyers who were really interested.

Word gets around, so the demand for more of these Independence Day-themed flyers has gone through the roof – so much so that every last flyer that they got back from the print shop had to be shipped right back out to Chet’s real estate contacts.

All in all, it was good creative project that broke up some of the monotony of Chet and Fred’s workday. The only problem is that the print shop did not send back the CD with the master files on them, and Fred accidentally deleted the flyer file.

So, while Chet’s business card master file is safe on his computer, they no longer have a copy of the ad flyer in the office. But it’s not such a big deal. After all, the ad was only good for the next couple of weeks, and they sent out more than enough for Chet’s real estate contacts. If they need to make more, they can call the print shop and, hopefully, the shop will be able to locate the CD and deliver more.

Now, let’s take a closer look at this whole process and see what we can learn from it.

Case Study Questions

1. Look back over the information that Fred included in the flyer. Did he leave anything out that is required by law?

A. No.

B. Yes. He forgot the necessary unique identifiers.

C. Yes. Fred did not express the interest rate with at least three decimal places.

D. Both B and C


2. Did Fred include anything that goes directly against Oregon state law?

A. Yes. He should not have included the APR, because the Oregon state law prohibits its usage in advertisements.

B. Yes. The logo design violates the Oregon state law.

C. No. The ad flyer was entirely legal.


3. What about Chet’s business card? Did it comply with Oregon state law?

A. Yes. He put all of the pertinent contact information on it that a potential client would need. Otherwise, S & L would not have adopted it as a company-wide design.

B. No. Chet should have included the necessary unique identifiers on the card.

C. No. Chet should not have used the new eagle logo.

D. Both B and C.


4. What do you think about the print shop not sending back the CD with the master file for the flyer?

A. It is not really a problem. They can always call the print shop and have them find the CD to make more flyers.

B. It definitely poses a problem because S & L needs to keep a copy of the flyer on file.

C. It will not really be a problem, since the law only requires the licensee to keep such a flyer on file as long as the promotion is running. Because this promotion is only for late June until mid- July, and they are close to the end of June, not having a copy on file in the office is not entirely legal, but okay.


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