Question

Sound Financials Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. Instable Investments, Inc., sends e-mail ads to any e-mail address that Instable can find on the Web or otherwise generate.Refer to Fact Pattern 9-1. In those states with antispam laws, federal lawa. prohibits or regulates the use of spam.b. requires the use of spam by business entities.c. bans the use of spam altogether.d. preempts the application of state law to commercial e-mail with certain exceptions.

Answer 1

Answer:

D) preempts the application of state law to commercial e-mail with certain exceptions.

Explanation:

Always federal law will prevail over state law.

There are 36 states that have enacted laws that prohibiting or regulate spam use, but all of these laws must cover areas not included in the CAN-SPAM Act (the federal law). State laws can serve as complements to federal law, but never replace it.

From the information provided Sound Financial seems to be in compliance with the CAN_SPAM act while Instable Investments appears to by breaking the law.