Exam 14: Regulations and Ethical Concerns

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Pepsi creates an advertisement suggesting it sponsors the U.S. Olympic basketball team by showing a basketball game in a commercial. This is a form of ________ marketing.

(Multiple Choice)
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Puffery is:

(Multiple Choice)
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The practice of purchasing internet domains that are valuable to other people, companies, or organizations is:

(Multiple Choice)
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In terms of substantiation of advertising claims, the FTC and the courts assume that consumers can and will read fine print or qualifying language that is placed in an advertisement.

(True/False)
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When a substantial number of people are misled by a series of commercials or an advertisement, it is deemed to be deceptive or misleading.

(True/False)
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Critics of the beer industry and marketers agree on all of the following statements about alcohol and underage individuals except:

(Multiple Choice)
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If Megan wants to know if people have complained about a particular health club being unsafe or unclean, she should contact the:

(Multiple Choice)
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The NARB is supported by the Federal Trade Commission and has legal authority over cases it reviews.

(True/False)
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Concerns and criticisms regarding advertising include the following except advertising:

(Multiple Choice)
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When the Federal Trade Commission orders a firm to prepare corrective advertisements, the goal is to bring people back to the neutral state that existed before the false and deceptive advertising was used by the company.

(True/False)
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A claim is when a firm makes an exaggerated statement about a good or service, while puffery is when a firm makes a factual statement about a good or service.

(True/False)
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The Children's Advertising Review Unit of the CBBB operates in a manner similar to the National Advertising Division of the CBBB in terms of handling complaints.

(True/False)
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In terms of substantiation of advertising claims, the FTC and the courts state that evidence presented must be for the exact product being tested, not for a similar product.

(True/False)
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If a consent agreement cannot be reached with a company, the Federal Trade Commission then issues a(n):

(Multiple Choice)
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A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

(True/False)
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Which agency has the authority to order corrective advertising?

(Multiple Choice)
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When a company agrees with the Federal Trade Commission and signs a consent order, the company agrees to stop the ad or marketing practice and also agrees to pay civil penalties.

(True/False)
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When the FTC issues an administrative complaint and an administrative judge rules a violation has occurred, the judge issues a cease and desist order.

(True/False)
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Brand infringement occurs when a company creates a brand name that closely resembles a popular or successful brand.

(True/False)
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Hedonism is the natural craving for balance in one's life.

(True/False)
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