Fashion Industries, Inc. manufactures dresses which it sells throughout the United States and South America. Among its 5,000 employees were 165 youngsters aged 14 and 15 who worked full-time during the day and were paid at a rate less than the minimum wage. Which statement is true in accordance with the general rules of the Fair Labor Standards Act?

A. Fashion did not violate the law since both male and female youngsters were paid at the same rate and worked only on Saturdays.

B. Fashion violated the law by employing children under 16 years of age.

C. Fashion was exempt from regulation because fewer than 5% of its employees were children.

D. Fashion was exempt from regulation if more than 10% of its sales were in direct competition with foreign goods.