20-21
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 20-02 Describe the various marketing activities aimed at children that are controversial.
Topic: Children’s Online Privacy Issues
48. __________ relates to the collection and use of information from websites.
A. Online privacy
B. Online security
C. Online research
D. Online commerce
E. Online marketing
49. Which of the following is the result of concern regarding the invasion of children’s privacy?
A. Telephone Consumer Protection Act
B. Children’s Online Privacy Protection Act
C. Federal Do Not Call Registry
D. Children’s Internet Protection Act
E. Children’s Internet Act
50. Which of the following statements is true regarding the Children’s Online Privacy Protection Act (COPPA)?
A. It does not apply to nonprofits.
B. Information cannot be collected from children, used or disclosed unless the website operator has obtained
verifiable parental consent after the information has been collected.
C. The COPPA rules don’t appear to be working.
D. It authorizes CARU to develop specific rules to implement the provisions of the act.
E. All of these choices are correct.
51. What year did the rules based on the guidelines in the Children’s Online Privacy Protection Act go in to effect?
A. 1990
B. 1995
C. 1998
D. 2000
E. 2002
52. Rita has noticed when she goes to children-oriented websites with her daughter, that there are clear and
prominent links to privacy policies, and whenever an attempt to request information appeared, it required her
consent. These things that Rita has noticed are the result of which law?
A. Telephone Consumer Protection Act
B. Children’s Online Privacy Protection Act
C. Federal Do Not Call Registry
D. Children’s Internet Protection Act
E. Children’s Internet Act
20-23
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Gradable: automatic
Learning Objective: 20-02 Describe the various marketing activities aimed at children that are controversial.
Topic: Children’s Online Privacy Issues
53. Regulation of marketing activities aimed at adults has focused on
A. product features.
B. marketing communications.
C. pricing practices.
D. product features and marketing communications.
E. product features, marketing communications, and pricing practices.
54. Which part of the FTC Privacy Protection Framework relates to data security, reasonable collection units, sound
retention practices, and data accuracy?
A. simplified consumer choice
B. transparency
C. privacy by design
D. Internet Privacy Act
E. None of these choices are correct.
55. Which of the following are part of the FTC Privacy Protection Framework.
A. privacy by design
B. simplified consumer choice
C. transparency
D. privacy by design and Transparency
E. All of these choices are correct.
56. The FTC has put forth a Privacy Protection Framework, which includes
A. incorporating consumer privacy throughout the organization.
B. simplifying consumer choice.
C. increasing transparency of data practices.
D. incorporating consumer privacy throughout the organization and increasing transparency of data practices.
E. All of these choices are correct.
57. Nat wants to comply with the FTC’s recommendations regarding consumer-oriented commercial websites that
collect personal identifying information from or about consumers. Which of the following is not one of the
recommendations made by the FTC?
A. provide notice to consumers that are transparent
B. allow consumers to choose how information concerning them will be used in a simplified manner
C. require parental consent when collecting information from children under the age of 18
D. offer consumers reasonable access to the information a website has collected about them
E. privacy by design
20-25
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Gradable: automatic
Learning Objective: 20-03 Discuss new guidelines by the FTC regarding online privacy protection for adults.
Topic: Consumer Privacy
58. “Royal makes tires for the Jeep Cherokee” is an example of
A. a direct claim.
B. a logical implication.
C. a pragmatic implication.
D. an inferred claim.
E. None of these choices are correct.
59. Which of the following is a major concern regarding legal and ethical behavior with respect to marketing
communications?
A. the tastefulness of the ad
B. the accuracy of the information provided
C. the media used to deliver the ad
D. the creativity of the ad
E. the effectiveness of the ad
60. What are the three major concerns regarding legal and ethical behavior with respect to marketing
communications?
A. the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact
of marketing information on society’s values
B. the accuracy of the information provided, the tastefulness of the ad, and the creativity of the ad
C. the media used, the prevalence of advertising, and the tastefulness of the ad
D. the amount of information provided, the tastefulness of the ad, and the cumulative impact of marketing
information on society’s values
E. the media used, the accuracy of the information provided, and the manner in which the information is provided
61. Critics of ads that emphasize beauty or sex appeal as major benefits feel that the harmful effects may be most
severe for which consumers?
A. young men
B. young women
C. minorities
D. older men
E. older women
62. Implied meanings that consumers derive when interpreting language in a practical way are known as
A. false claims.
B. indirect claims.
C. pragmatic implications.
D. practical meanings.
E. direct claims.
20-27
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 20-04 Explain marketing communication issues related to adults including deceptive advertising.
Topic: Marketing Communications
63. Which of the following is the most difficult to regulate?
A. the explicit verbal content of ads
B. the subtle meanings implied by the visual content of ads
C. the adequacy of the information provided in ads
D. a website’s privacy policy with respect to children
E. the use of corrective advertising
64. Advertising run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the
firm’s earlier advertising is called
A. controvertible advertising.
B. redundant advertising.
C. conforming advertising.
D. corrective advertising.
E. retractive advertising.
65. For years, Doan’s Pills advertised that this medication is superior for relieving back pain. The FTC found this
claim to be deceptive and ordered Doan’s to run advertising that informed consumers of this deception in an attempt
to cause consumers to unlearn the inaccurate information. What type of advertising is this known as?
A. controvertible advertising
B. redundant advertising
C. conforming advertising
D. corrective advertising
E. retractive advertising
66. Which of the following statements is false regarding corrective advertising?
A. Firms injured by false claims of competitors can request it as a remedy from the FTC.
B. It has been shown to be a useful tool in protecting the public.
C. It is run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm’s
earlier advertising.
D. A court ruling has challenged the conditions under which the FTC can require it.
E. The effectiveness of it has been debated.
67. In several ads for Listerine over a period of more than a year, the company made statements that previous ads
were not true in that Listerine cannot kill the germs that cause a cold. Which type of advertising does this illustrate?
A. controvertible advertising
B. redundant advertising
C. conforming advertising
D. corrective advertising
E. retractive advertising
68. Which of the following has the purpose of ensuring that consumers are provided with adequate information?
A. Telephone Consumer Protection Act
B. truth-in-lending legislation
C. FTC Corrective Advertising Act
D. Internet Protection Act
E. FTC’s unfairness authority
69. Which of the following consumers are least likely to be able to use the information provided by marketers?
A. men
B. women
C. those who are relatively disadvantaged in terms of education and income
D. baby boomers
E. professionals who are too busy to attend to the information
20-30
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 20-04 Explain marketing communication issues related to adults including deceptive advertising.
Topic: Marketing Communications
70. Which law deals with nutrition labeling on products’ packages?
A. Truth-in-Labeling Law
B. Nutritional Labeling and Education Act
C. Trans Fat Labeling Act
D. Fair Packaging and Labeling Act
E. U.S. Packaging and Labeling Law
71. The rule that requires marketers to list the number of grams of trans fat on a product’s package is an amendment
of which law?
A. Truth-in-Labeling Law
B. Nutritional Labeling and Education Act
C. Fat Labeling Act
D. Fair Packaging and Labeling Act
E. U.S. Packaging and Labeling Law
72. What is paid advertising that looks like the media format in which it appears?
A. sponsored advertising
B. native advertising
C. local advertising
D. media advertising
E. foreign advertising
73. Susan picked up a package of potato chips and noticed on the front of the package the words, “0 grams of trans
fat.” She looked at the nutrition label and noticed that listed beneath the number of total grams of fat was the number
of grams of trans fat, which was zero in this case. The trans fat information appearing on the nutritional label is a
result of the label rule enacted by the
A. NAD.
B. FTC.
C. NLEA.
D. OPPA.
E. FDA.