Exam 14: Regulations and Ethical Concerns

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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.

(True/False)
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The Children's Advertising Review Unit (CARU)of the Council of Better Business Bureaus monitors online privacy practices of websites that involve children younger than 13 years of age.

(True/False)
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If an advertiser uses expert endorsements, statements made by the expert in the advertisement must be based on:

(Multiple Choice)
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The Federal Trade Commission orders corrective advertising in:

(Multiple Choice)
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In the United States and many Western nations, the form of law that is used is called civil law.

(True/False)
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The Wheeler-Lea Amendment (1938)of the Federal Trade Commission Act prohibits false and misleading advertisements.

(True/False)
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What two approaches can companies use to build ethical standards?

(Essay)
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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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What principles should be used when creating substantiation of an advertising claim?

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Public complaints about the amount of violence on television would be sent to the:

(Multiple Choice)
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If the National Advertising Review Board rules that a firm's advertisements are not substantiated, then the NARB orders the firm to discontinue the ads. This is very similar to the cease and desist order of the FTC.

(True/False)
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In the past, attorneys, physicians, and dentists did not advertise for fear of negative reactions by patients and clients.

(True/False)
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Describe the nature of an administrative complaint made before the Federal Trade Commission (FTC).

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The philosophy that suggests a balance of a variety of urges throughout life is best is:

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The National Advertising Review Board is composed of advertising professionals and prominent civic individuals.

(True/False)
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Homeostasis is a philosophy that:

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Concerns and criticisms regarding advertising include the following except advertising:

(Multiple Choice)
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The NARB of the Council of Better Business Bureau is composed of:

(Multiple Choice)
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The funeral industry was sanctioned by the FTC in 1984 and 1994 for practices common in the industry that the FTC believed were not fair to consumers. To correct these misleading practices, the FTC issued a:

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

(True/False)
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