200) The purpose of ________ is to give the author of a literary, dramatic, musical, or artistic
202) The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are examples
of
A) pricing-related legislation.
B) laws specifying product requirements.
C) fair trade legislation.
D) distribution-related legislation.
E) government contracts with private firms.
203) All of the following federal laws are designed to protect consumers except which?
204) The grassroots movement started in the 1960s to increase the influence, power, and rights
of consumers in dealing with institutions is referred to as
A) Naderism.
B) consumerism.
C) green marketing.
D) anti-corporate activism.
E) libertarianism.
205) Consumerism refers to
A) a movement of conspicuous consumption that began when World War II ended.
B) conducting business in a way that protects the natural environment while making economic
progress.
C) a collaborative effort between buyers and sellers to create an exchange where each benefit.
D) the recognition of the need for organizations to improve the state of people, the planet, and
profit simultaneously if they are to achieve sustainable, long-term growth.
E) the grassroots movement started in the 1960s to increase the influence, power, and rights of
consumers in dealing with institutions.
206) Which of these laws came about as a response to the 1960s grassroots movement known as
consumerism?
207) Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target
practice areas across the United States. Pentagon officials, in response to environmentalists’
concerns over lead poisoning in the soil, have invested over $12 million to develop an
environmentally safe tungsten bullet. This is an example of one of the outcomes of
A) marketing ethics.
B) consumerism.
C) cause marketing.
D) self-regulation.
E) Naderism.
208) The two major purposes for any trademark statute are to
A) protect the investment of energy, time, and money that the owner of a trademark has invested
in the development of the product and guarantee the owner of the trademark complete rights to
his work for the duration of the owner’s lifetime.
B) protect the inventor’s individual rights and provide the company with the maximum profits
possible.
C) protect the rights of the inventor both here and abroad.
D) protect the public so they will get the product it wants and asks for and protect the
government so it will be able to collect its fair share of taxes from the revenues generated.
E) protect the firm selling the trademarked product and protect the consumer buying the product.
209) The Lanham Act
A) prevents someone from using a trademark on a noncompeting product.
B) protects the consumer from product defects.
C) provides for registration of a company’s trademarks.
D) allows a company to secure rights to a name before its actual use.
E) facilitates the protection of U.S. trademark rights throughout the world.
210) The ________ provides for registration of a company’s trademark, such as the Nike swoosh.
A) Lanham Act
B) Patent Act
C) Clayton Act
D) Sherman Antitrust Act
E) Miller-Tydings Act
211) The Lanham Act cannot protect the rights to a trademark if
A) the company is accused of violating the Sherman Antitrust Act.
B) the product patent is less than 17 years old.
C) the word, name, or symbol has become generic.
D) the statute of limitations has run out.
E) the government refuses to enforce violations.
212) The popular cupcake chain Sprinkles, which first launched in Southern California in 2005,
recently settled a trademark infringement lawsuit against a Connecticut bakery that was calling
itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it
was apparently violating provisions of the
A) Consumer Product Safety Act.
B) Consumer Bill of Rights.
C) Lanham Act.
D) Sherman Antitrust Act.
E) CAN-SPAM Act.
213) Registration under the Lanham Act provides important advantages to a trademark owner
that has used the trademark in interstate or foreign commerce, but it does not
A) allow a trademark to be used for more than 83 years.
B) provide reciprocity with foreign firms allowing their trademarks to be honored here.
C) prevent other firms from obtaining similar trademarks for significant improvements on the
original product.
D) guarantee protection under the Trademark Law Revision Act.
E) confer ownership.
214) Coca-Cola has hired brand police to make sure that the Coca-Cola brand name and logo are
not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark?
A) Coca-Cola risks losing its generic status.
B) In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the
name from becoming generic.
C) The Robinson-Patman Act conferred ownership of the Coke name and other trademarked
property to the Coca-Cola Co.
D) The government will file charges for trademark infringement only if the owner of the
trademark has documented proof of wrongdoing.
E) By protecting its trademark, Coca-Cola is protecting the entire soft drink industry from
indirect competition.
215) In 2008, Apple filed for and received approval from the U.S. Patent and Trademark Office
to trademark the “App Store” name to describe a service that allows its iPhone and iPad
customers to purchase and download applications, video games, and other software. Over the
years, Apple has invested millions in advertising and publicity and customers have purchased
millions of dollars of software from its “App Store.” However, Amazon.com claims that Apple
did not have exclusive rights to the name because other firms used it to describe their online
storefronts where consumers can obtain software for smartphones and tablet devices. In 2011,
Apple filed a lawsuit against Amazon for violating its trademark. Why should Apple rigorously
protect its “App Store” trademark?
A) Apple risks losing its status as a generic smartphone and tablet device manufacturer.
B) In order to maintain the use of its widely recognizable trademark, Apple must prevent the
name from becoming generic.
C) The Robinson-Patman Act conferred ownership of the “App Store” name and other
trademarked property to Apple and/or Microsoft.
D) The government will file charges for trademark infringement only if Apple, the owner of the
trademark, has documented proof of wrongdoing by Amazon.
E) By protecting its trademark, Apple is protecting the entire smartphone and tablet device
industries from indirect competition.
216) In 1988, the Trademark Law Revision Act resulted in a major change to the Lanham Act.
The change allows
A) a company to secure rights to a name before its actual use by declaring an intent to use the
name.
B) products to use generic terms as trademarks.
C) inventors to apply for use of Internet domain names.
D) a company to declare trademark ownership in foreign markets.
E) products to use more than one trademark.
217) The Trademark Law Revision Act addresses the right of a company to
A) sell to the highest bidder a trademark that has expired or been retired.
B) incorporate an unlimited number of new products under the same trademark.
C) secure rights to a name before the product is even in use.
D) alter its trademark in terms of color, design, or slogan without having to reapply for a new
trademark.
E) protects U.S. trademark rights throughout the world.
218) The Madrid Protocol is
219) The Federal Trademark Dilution Act
A) prevents someone from using a trademark on a noncompeting product.
B) provides for registration of a company’s trademarks.
C) allows a company to secure rights to a name before its actual use.
D) facilitates the protection of U.S. trademark rights throughout the world.
E) allows language adaptations for trademarks in different parts of the world.
220) The courts see price fixing as per se illegal, which means the courts
A) see price fixing itself as illegal.
B) do not view price fixing as illegal unless the intention was to harm the consumer.
C) only consider price fixing to be illegal if a company is sued.
D) compare the company behavior to behavior typical in its industry in determining legality.
E) view price fixing as illegal only if it causes destructive competition.
221) An arrangement a manufacturer makes with a reseller to handle only its products and not
those of competitors is referred to as
A) a tying arrangement.
B) requirement contracting.
C) exclusive dealing.
D) territorial dealership contracting.
E) selective distribution.
222) If a major food company offered supermarket chains special prices and incentives to carry
its brand of frozen vegetables and not to carry competing brands, it could be accused of
________ and would be subject to prosecution if its actions substantially reduced competition.
A) requirement contracting
B) a tying arrangement
C) territorial infringement
D) a monopolistic practice
E) exclusive dealing
223) ________ demand buyers purchase all or part of their needs for a product from a particular
seller for a period of time.
A) Exclusive deals
B) Requirement contracts
C) Tying arrangements
D) Territorial dealership contracts
E) Selective promotion contracts
224) If a manufacturer grants a distributor the sole rights to sell a product in a specific
geographic area it is called
A) exclusive dealing.
B) a tying arrangement.
C) a selective promotion contract.
D) an exclusive territorial distributorship.
E) a requirement contract
225) The rights to a John Grisham novel were sold to a British publisher for sales in the United
Kingdom and Ireland, a U.S. publisher for the United States and Canada, and an Australian
publisher for Australia and New Zealand. This is an example of
A) exclusive dealing.
B) a tying arrangement.
C) a selective promotion contract.
D) an exclusive territorial distributorship.
E) a requirement contract
226) A seller’s requirement that the purchaser of one product also buy another item in the line is
called
A) exclusive dealing.
B) a tying arrangement.
C) a selective promotion contract.
D) an exclusive territorial distributorship.
E) a requirement contract
227) A software manufacturer will only sell its popular line of Pokémon software games to
retailers who will also carry its less successful Hello Kitty software game. This is an example of
A) exclusive dealing.
B) a tying arrangement.
C) a selective promotion contract.
D) an exclusive territorial distributorship.
E) a requirement contract
228) A paint manufacturer will sell a retail paint outlet its paint only if the retailer also buys the
manufacturer’s line of brushes and accessories. This is an example of
A) exclusive dealing.
B) a tying arrangement.
C) a selective promotion contract.
D) an exclusive territorial distributorship.
E) a requirement contract
229) Which of the following legislative actions created a government entity to monitor business
practices and stop unfair ones such as misleading promotions?
A) Robinson-Patman Act
B) Consumer Product Safety Act
C) Lanham Act
D) Federal Trade Commission Act
E) Fair Packaging and Labeling Act
230) The ________ can require a company to spend money on corrective advertising to rectify
previous misleading ads.
A) Food and Drug Administration
B) U.S. Department of Justice
C) Federal Trade Commission
D) Better Business Bureau
E) American Marketing Association
231) Which of the following is an action the Federal Trade Commission (FTC) can take to stop a
company from continuing an unfair trade practice?
A) competitive advertising
B) a cease and desist order
C) a private ruling
D) a consent degree
E) a stay
232) Which of the following can be required by the Federal Trade Commission (FTC) when a
company has issued misleading ads?
A) corrective advertising
B) a bankruptcy filing
C) an advertising injunction
D) a truth in advertising order
E) comparative advertising
233) There are many diet aids on the market. They promise immediate weight loss without
exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you
pay close attention, you will notice that each ad also contains the statement, “Results may vary.”
Most likely this statement is included to prevent the Federal Trade Commission (FTC) from
requiring the dietary aid distributor from having to
A) engage in self-regulation.
B) engage in comparative advertising.
C) issue an advertising injunction.
D) guarantee truth in advertising.
E) run corrective advertising.
234) For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required
to include the following statement in all television advertisements for Listerine: “Listerine will
not help prevent colds or sore throats or lessen their severity.” The Federal Trade Commission
(FTC) imposed this requirement because previous advertising had caused consumers to believe
Listerine was effective against colds. This is an example of the FTC action known as
A) corrective advertising.
B) deceptive advertising.
C) unethical advertising.
D) cease and desist advertising.
E) self-regulation.
235) It had been the Campbell Soup Co.’s practice to insert clear glass marbles into the bottom of
soup containers used in print advertisements to bring some of the soup’s ingredients (e.g.,
noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the
soup. Which agency would monitor such a practice?
A) Food and Drug Administration
B) U.S. Department of Justice
C) Federal Trade Commission
D) Better Business Bureau
E) American Marketing Association