Question 1

_____ is the most important ethical issue that is unique to the online medium.

Accepted Answer

A)  Privacy 
B)  Slotting fees 
C)  Negative publicity 
D)  Piracy 
E)  Short filling

Question 2

Costs of regulation include cost of complying,enforcement costs,and costs resulting from unintended side effects.

Accepted Answer

A) True 
 B)False

Question 3

Discuss three ethical issues in advertising.

Accepted Answer

The answer of Discuss three ethical issues in advertising....

Question 4

The FTC's policy on deception is that the act or practice must be considered from the perspective of a _____.

Accepted Answer

A)  reasonable consumer 
B)  probable consumer 
C)  competitor 
D)  government agency 
E)  child

Question 5

Which of the following is NOT one of the guides for environmental claims promulgated by the Federal Trade Commission?

Accepted Answer

A)  Qualifications and disclosures should be sufficiently clear and prominent to prevent deception. 
B)  Claims should not be targeted to children. 
C)  Claims should make clear whether they apply to the product, the package, or a component of either. 
D)  Claims should not overstate an environmental attribute or benefit, either expressly or by implication. 
E)  Comparative claims should be presented in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception.

Question 6

According to the FTC,a misrepresentation is said to occur when qualifying information necessary to prevent a practice,claim,representation,or reasonable expectation or belief from being misleading is not disclosed.

Accepted Answer

A) True 
 B)False

Question 7

Consumer privacy is an ethical issue that transcends all marcom activities.

Accepted Answer

A) True 
 B)False

Question 8

Jose Ortega considered his options carefully to decide how his company should respond to a customer's complaint.In the end,he decided to treat the customer like he hoped a company would treat him if he reported a problem with a product he bought.He gave the customer a refund.He is using the _____ test.

Accepted Answer

A)  utilitarianism 
B)  Golden Rule 
C)  professional ethics 
D)  TV 
E)  moral idealism

Question 9

The FDA regulates the brewing and liquor industries.

Accepted Answer

A) True 
 B)False

Question 10

When are sweepstakes and contests unethical?

Accepted Answer

A)  The prize has no monetary value. 
B)  The prize is a new product. 
C)  Everyone receives a prize of some sort. 
D)  Consumers think their odds of winning are greater than they really are. 
E)  The sweepstakes or contests are used for publicity.

Question 11

What are the three basic elements of the FTC's current policy determining whether or not an ad is deceptive?

Accepted Answer

A)  misleading, reasonable consumer, and material 
B)  misleading, typical consumer, and injury 
C)  comparative ad, misleading, and reasonable consumer 
D)  injury, not avoidable, and material 
E)  injury, reasonable consumer, and false

Question 12

The XYZ Brewery Corporation undertook an advertising campaign which appeared to encourage pre-legal-drinking-aged teenagers to consume its high-powered malt liquor.The FTC can take action against XYZ on grounds that the advertising campaign is in violation of the _____ doctrine.

Accepted Answer

A)  substantiation 
B)  ethics 
C)  unfairness 
D)  responsibility 
E)  deceptive

Question 13

A false claim is,by definition,deceptive.

Accepted Answer

A) True 
 B)False

Question 14

The _____ is a form of self-regulation undertaken by ad media that takes place behind the scenes before a commercial or other advertisement reaches consumers.

Accepted Answer

A)  ad review process 
B)  advertising clearance process 
C)  NAD review process 
D)  NARB review process 
E)  advertising screening process

Question 15

The regulation of the brewing and liquor industries is done by the _____.

Accepted Answer

A)  Federal Trade Commission 
B)  Food and Drug Administration 
C)  Bureau of Alcohol, Tobacco, and Firearms 
D)  National Advertising Division 
E)  National Advertising Review Board

Question 16

AAAA is a self-regulatory group that monitors children's television programming and commercials.

Accepted Answer

A) True 
 B)False

Question 17

The _____ is the U.S.government agency that has primary responsibility for regulating information on the packages of food and drug products.

Accepted Answer

A)  NARB 
B)  NAD 
C)  FTC 
D)  FDA 
E)  BBB

Question 18

The _____ has issued a regular series of reports,titled Marketing Violent Entertainment to Children,that criticizes the entertainment industry for targeting children with advertisements for violent films,video games,and music.

Accepted Answer

A)  FDA 
B)  NAD 
C)  CARU 
D)  FTC 
E)  NARC

Question 19

General Mills is introducing a new line of barbecue sauce,and grocery retailers are requiring that General Mills pay them a per-store fee for their willingness to handle the new product.This fee is known as a _____ fee.

Accepted Answer

A)  placing 
B)  purchasing 
C)  selling 
D)  slotting 
E)  security

Question 20

Regulation of advertising may result in buyers switching to another product or reducing their level of consumption after regulation is imposed.This is an example of _____ regulation.

Accepted Answer

A)  unfair practices 
B)  covert marketing practices 
C)  information regulation in 
D)  unintended side effects of 
E)  Federal Trade Commission

Exam 4: Environmental, Regulatory and Ethical Issues

_____ is the most important ethical issue that is unique to the online medium.

Costs of regulation include cost of complying,enforcement costs,and costs resulting from unintended side effects.

Discuss three ethical issues in advertising.

The FTC's policy on deception is that the act or practice must be considered from the perspective of a _____.

Which of the following is NOT one of the guides for environmental claims promulgated by the Federal Trade Commission?

According to the FTC,a misrepresentation is said to occur when qualifying information necessary to prevent a practice,claim,representation,or reasonable expectation or belief from being misleading is not disclosed.

Consumer privacy is an ethical issue that transcends all marcom activities.

The FDA regulates the brewing and liquor industries.

When are sweepstakes and contests unethical?

What are the three basic elements of the FTC's current policy determining whether or not an ad is deceptive?

The XYZ Brewery Corporation undertook an advertising campaign which appeared to encourage pre-legal-drinking-aged teenagers to consume its high-powered malt liquor.The FTC can take action against XYZ on grounds that the advertising campaign is in violation of the _____ doctrine.

A false claim is,by definition,deceptive.

The _____ is a form of self-regulation undertaken by ad media that takes place behind the scenes before a commercial or other advertisement reaches consumers.

The regulation of the brewing and liquor industries is done by the _____.

AAAA is a self-regulatory group that monitors children's television programming and commercials.

The _____ is the U.S.government agency that has primary responsibility for regulating information on the packages of food and drug products.

The _____ has issued a regular series of reports,titled Marketing Violent Entertainment to Children,that criticizes the entertainment industry for targeting children with advertisements for violent films,video games,and music.

General Mills is introducing a new line of barbecue sauce,and grocery retailers are requiring that General Mills pay them a per-store fee for their willingness to handle the new product.This fee is known as a _____ fee.

Regulation of advertising may result in buyers switching to another product or reducing their level of consumption after regulation is imposed.This is an example of _____ regulation.