Question 1

When the FTC Act was passed in 1914, the Federal Trade Commission's responsibility was to enforce antitrust laws and to protect businesses from one another.

Accepted Answer

A) True 
 B)False

Question 2

The key difference, in terms of the FTC and the courts, between puffery and a claim is that puffery is not considered to be a factual statement while a claim is considered to be a factual statement that can be proven true or false.

Accepted Answer

A) True 
 B)False

Question 3

Describe a cease and desist order made by the Federal Trade Commission (FTC).

Accepted Answer

The answer of Describe a cease and desist order made...

Question 4

A form of law based on religious teachings is which type of law?

Accepted Answer

A) Moral 
B) Theocratic 
C) Civil 
D) Common

Question 5

Ads featuring underwear, condoms, and feminine hygiene products may be offensive to some people, which has led to regulations restricting when and where the ads can be placed.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) National Advertising Division. 
B) Federal Trade Commission. 
C) Better Business Bureau. 
D) National Advertising Review Board.

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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 9

If a case is appealed from the National Advertising Review Board, it would go to the:

Accepted Answer

A) NAD. 
B) U)S. Court of Appeals. 
C) FTC. 
D) administrative board of the CBBB.

Question 10

The Federal Trade Commission, National Advertising Division, and the courts would consider the word "better" used in an advertisement to be:

Accepted Answer

A) deceptive and misleading advertising. 
B) puffery. 
C) puffery, but it also implies a comparison, which, if challenged, may require substantiation. 
D) a violation of the Federal Trade Commission Act.

Question 11

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

Accepted Answer

A) cease and desist order. 
B) corrective advertising directive. 
C) appeal to the Court of Appeals. 
D) administrative complaint.

Question 12

When a brand is associated with a major sporting event without any intentional or indirect effort on the brand's part, it is which form of marketing?

Accepted Answer

A) Stealth 
B) Direct ambush 
C) Incidental ambush 
D) Indirect ambush

Question 13

With direct ambush marketing, a brand suggests or hints it is associated with a major sporting event when it is not an official sponsor.

Accepted Answer

A) True 
 B)False

Question 14

Stealth 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 particular brand without them realizing the person making the sales pitch is being paid or compensated by the brand.

Question 15

The Federal Communications Commission holds jurisdiction over the content of advertisements transmitted by mass media.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Concerns and criticisms regarding advertising include each of the following except advertising:

Accepted Answer

A) to children is unethical. 
B) is often offensive. 
C) perpetuates stereotyping of males, females, and minority groups. 
D) leads to greater levels of governmental regulation.

Exam 14: Regulations and Ethical Concerns

When the FTC Act was passed in 1914, the Federal Trade Commission's responsibility was to enforce antitrust laws and to protect businesses from one another.

The key difference, in terms of the FTC and the courts, between puffery and a claim is that puffery is not considered to be a factual statement while a claim is considered to be a factual statement that can be proven true or false.

Describe a cease and desist order made by the Federal Trade Commission (FTC).

A form of law based on religious teachings is which type of law?

Ads featuring underwear, condoms, and feminine hygiene products may be offensive to some people, which has led to regulations restricting when and where the ads can be placed.

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

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.

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.

If a case is appealed from the National Advertising Review Board, it would go to the:

The Federal Trade Commission, National Advertising Division, and the courts would consider the word "better" used in an advertisement to be:

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

When a brand is associated with a major sporting event without any intentional or indirect effort on the brand's part, it is which form of marketing?

With direct ambush marketing, a brand suggests or hints it is associated with a major sporting event when it is not an official sponsor.

Stealth marketing occurs when:

The Federal Communications Commission holds jurisdiction over the content of advertisements transmitted by mass media.

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

Concerns and criticisms regarding advertising include each of the following except advertising: