Question 1

If after an administrative hearing a company is still not satisfied with the ruling of the FTC, the next step would be to:

Accepted Answer

A)  appeal the decision to the Court of Appeals. 
B)  hold a hearing before the full FTC. 
C)  appeal the decision to the Supreme Court. 
D)  hold a hearing before an administrative law judge. 
A)  appeal the decision to the Court of Appeals. 
B)  hold a hearing before the full FTC. 
C)  appeal the decision to the Supreme Court. 
D)  hold a hearing before an administrative law judge.

Question 2

The Wheeler-Lea Amendment makes advertising using puffery illegal.

Accepted Answer

A) True 
 B)False

Question 3

The FCC places limits on advertising to children on weekends, but not on weekdays.

Accepted Answer

A) True 
 B)False

Question 4

Before issuing trade regulation rulings, the FTC normally holds a public hearing and accepts both oral and written arguments.

Accepted Answer

A) True 
 B)False

Question 5

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are:

Accepted Answer

A)  permitted for international firms doing business in France or Germany. 
B)  permitted for French- or German-owned companies. 
C)  accepted if it involves a contract with the government, but not allowed for companies doing business with each other. 
D)  accepted, and companies may even be able to deduct them as business expenses on their taxes. 
A)  permitted for international firms doing business in France or Germany. 
B)  permitted for French- or German-owned companies. 
C)  accepted if it involves a contract with the government, but not allowed for companies doing business with each other. 
D)  accepted, and companies may even be able to deduct them as business expenses on their taxes.

Question 6

All of the following are components of the Wheeler-Lea Amendment to the FTC Act except:

Accepted Answer

A)  expanded authority of the FTC to prohibit false and misleading advertising practices. 
B)  granted the FTC power to monitor the amount of time television stations advertise to children. 
C)  gave the FTC power to levy fines when necessary. 
D)  granted the FTC access to the courts to enforce the law and ensure compliance with FTC rulings. 
A)  expanded authority of the FTC to prohibit false and misleading advertising practices. 
B)  granted the FTC power to monitor the amount of time television stations advertise to children. 
C)  gave the FTC power to levy fines when necessary. 
D)  granted the FTC access to the courts to enforce the law and ensure compliance with FTC rulings.

Question 7

Although the word "better" is normally accepted as puffery, the word "best" is somewhat vague and implies a comparison, which has recently been tested through the FTC.

Accepted Answer

A) True 
 B)False

Question 8

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are accepted and companies may even deduct the amount as a legitimate income tax expense.

Accepted Answer

A) True 
 B)False

Question 9

The National Advertising Review Board seldom refers cases to the FTC.

Accepted Answer

A) True 
 B)False

Question 10

If at the end of an administrative hearing of an FTC case, the judge feels a violation of the law has taken place, the judge issues a:

Accepted Answer

A)  cease and desist order. 
B)  consent agreement. 
C)  corrective advertising directive. 
D)  trade regulation ruling. 
A)  cease and desist order. 
B)  consent agreement. 
C)  corrective advertising directive. 
D)  trade regulation ruling.

Question 11

Individuals and organizations have responded to the need for a more ethical environment by creating ethics training programs, codes of ethics, and ethics consulting systems.

Accepted Answer

A) True 
 B)False

Question 12

The Federal Trade Commission orders corrective advertising in:

Accepted Answer

A)  only the most severe instances of deceptive and misleading advertising. 
B)  cases involving advertising to children. 
C)  cases that are appealed to the U.S. Court of Appeals. 
D)  most cases that are investigated. 
A)  only the most severe instances of deceptive and misleading advertising. 
B)  cases involving advertising to children. 
C)  cases that are appealed to the U.S. Court of Appeals. 
D)  most cases that are investigated.

Question 13

Business ethics are:

Accepted Answer

A)  beliefs or principles that individuals hold concerning what is right and what is wrong. 
B)  moral principles that individuals hold concerning what is right and what is wrong. 
C)  moral principles that serve as guidelines for both individuals and organizations. 
D)  beliefs or principles that serve as guidelines for both individuals and organizations. 
A)  beliefs or principles that individuals hold concerning what is right and what is wrong. 
B)  moral principles that individuals hold concerning what is right and what is wrong. 
C)  moral principles that serve as guidelines for both individuals and organizations. 
D)  beliefs or principles that serve as guidelines for both individuals and organizations.

Question 14

Direct ambush marketing occurs when:

Accepted Answer

A)  firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event. 
B)  a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand. 
C)  a brand suggests or hints it is associated with a major sporting event when it is not. 
D)  consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand. 
A)  firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event. 
B)  a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand. 
C)  a brand suggests or hints it is associated with a major sporting event when it is not. 
D)  consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand.

Question 15

The Food and Drug Administration regulates and oversees the packaging and labeling of products. It also monitors advertising on food packages and advertisements for drugs.

Accepted Answer

A) True 
 B)False

Question 16

A "typical person" must believe the content of an advertisement to be false in order for the Wheeler-Lea Amendment to apply.

Accepted Answer

A) True 
 B)False

Question 17

Ambush marketing occurs when a brand attempts to associate itself with a competing brand through comparative advertising.

Accepted Answer

A) True 
 B)False

Question 18

Children are an attractive market segment for advertisers because children spend so much money each year.

Accepted Answer

A) True 
 B)False

Question 19

In many European countries, the form of law that is used is called common law.

Accepted Answer

A) True 
 B)False

Question 20

Of the following taglines or slogans, which would most likely trigger an investigation by the Federal Trade Commission or National Advertising Division of the CBBB?

Accepted Answer

A)  For the finest Asian food come to China Garden 
B)  Eat at Wendy's, the best hamburgers in town 
C)  Tree Top apple juice is twice as good 
D)  For better looking skin, use Avon 
A)  For the finest Asian food come to China Garden 
B)  Eat at Wendy's, the best hamburgers in town 
C)  Tree Top apple juice is twice as good 
D)  For better looking skin, use Avon

If after an administrative hearing a company is still not satisfied with the ruling of the FTC, the next step would be to:

The Wheeler-Lea Amendment makes advertising using puffery illegal.

The FCC places limits on advertising to children on weekends, but not on weekdays.

Before issuing trade regulation rulings, the FTC normally holds a public hearing and accepts both oral and written arguments.

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are:

All of the following are components of the Wheeler-Lea Amendment to the FTC Act except:

Although the word "better" is normally accepted as puffery, the word "best" is somewhat vague and implies a comparison, which has recently been tested through the FTC.

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are accepted and companies may even deduct the amount as a legitimate income tax expense.

The National Advertising Review Board seldom refers cases to the FTC.

If at the end of an administrative hearing of an FTC case, the judge feels a violation of the law has taken place, the judge issues a:

Individuals and organizations have responded to the need for a more ethical environment by creating ethics training programs, codes of ethics, and ethics consulting systems.

The Federal Trade Commission orders corrective advertising in:

Business ethics are:

Direct ambush marketing occurs when:

The Food and Drug Administration regulates and oversees the packaging and labeling of products. It also monitors advertising on food packages and advertisements for drugs.

A "typical person" must believe the content of an advertisement to be false in order for the Wheeler-Lea Amendment to apply.

Ambush marketing occurs when a brand attempts to associate itself with a competing brand through comparative advertising.

Children are an attractive market segment for advertisers because children spend so much money each year.

In many European countries, the form of law that is used is called common law.

Of the following taglines or slogans, which would most likely trigger an investigation by the Federal Trade Commission or National Advertising Division of the CBBB?

Integrated Marketing Communications

Corporate Image and Brand Management

Buyer Behaviors

The IMC Planning Process

Advertising Management

Advertising Design

Traditional Media Channels

Digital Marketing

Social Media

Alternative Marketing

Database and Direct Response Marketing and Personal Selling

Sales Promotions

Public Relations and Sponsorship Programs

Evaluating an Integrated Marketing Program

Filters

Exam 14: Regulations and Ethical Concerns

If after an administrative hearing a company is still not satisfied with the ruling of the FTC, the next step would be to:

The Wheeler-Lea Amendment makes advertising using puffery illegal.

The FCC places limits on advertising to children on weekends, but not on weekdays.

Before issuing trade regulation rulings, the FTC normally holds a public hearing and accepts both oral and written arguments.

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are:

All of the following are components of the Wheeler-Lea Amendment to the FTC Act except:

Although the word "better" is normally accepted as puffery, the word "best" is somewhat vague and implies a comparison, which has recently been tested through the FTC.

Although giving or receiving bribes in business-to-business interactions is illegal in the United States, in some countries, such as France and Germany, bribes are accepted and companies may even deduct the amount as a legitimate income tax expense.

The National Advertising Review Board seldom refers cases to the FTC.

If at the end of an administrative hearing of an FTC case, the judge feels a violation of the law has taken place, the judge issues a:

Individuals and organizations have responded to the need for a more ethical environment by creating ethics training programs, codes of ethics, and ethics consulting systems.

The Federal Trade Commission orders corrective advertising in:

Business ethics are:

Direct ambush marketing occurs when:

The Food and Drug Administration regulates and oversees the packaging and labeling of products. It also monitors advertising on food packages and advertisements for drugs.

A "typical person" must believe the content of an advertisement to be false in order for the Wheeler-Lea Amendment to apply.

Ambush marketing occurs when a brand attempts to associate itself with a competing brand through comparative advertising.

Children are an attractive market segment for advertisers because children spend so much money each year.

In many European countries, the form of law that is used is called common law.

Of the following taglines or slogans, which would most likely trigger an investigation by the Federal Trade Commission or National Advertising Division of the CBBB?

Integrated Marketing Communications

Corporate Image and Brand Management

Buyer Behaviors

The IMC Planning Process

Advertising Management

Advertising Design

Traditional Media Channels

Digital Marketing

Social Media

Alternative Marketing

Database and Direct Response Marketing and Personal Selling

Sales Promotions

Public Relations and Sponsorship Programs

Evaluating an Integrated Marketing Program

Filters