Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
A relatively new remedy for deceptive and unfair advertising taken by the FTC is to ________.
1)
A)
make public specific information about a deceptive advertising case
B)
require corrective advertising to correct the false impressions a deceptive ad made
C)
make the deceptive advertiser spend time in prison
D)
make the advertising agency liable for deceptive advertising along with the advertiser when
the agency is an active participant in the preparation of the ad and knows or has reason to
know that it is false or deceptive
E)
fine a deceptive advertiser $10,000 per day for every day the deceptive ad ran
2)
A(n) ________ is any advertising message that consumers believe reflects the opinions, beliefs, or
experiences of an individual, group, or institution.
2)
A)
comparative ad
B)
puffed ad
C)
two–sided message
D)
endorsement
E)
one–sided message
Explanation:
3)
Under which amendment or act are unique trademarks protected from infringement by
competitors?
3)
A)
Wheeler–Lea Amendment
B)
Federal Trade Commission Act
C)
FTC Improvement Act
D)
Pure Food and Drug Act
E)
Lanham Act
Explanation:
Explanation:
4)
What is NOT considered by the FTC when determining the reasonableness of a claim in an
advertisement?
4)
A)
type of product
B)
possible consequences of a false claim
C)
type and specificity of claim made
D)
degree of reliance on the claims by consumers
E)
price of the product
5)
Many people objected to an ad that used a style of lighting and staging reminiscent of a porn movie
to show prepubescent teens in their underwear because it was ________.
5)
A)
in poor taste and offensive
B)
too dark
C)
too materialistic
D)
humorous
E)
racial stereotyping
6)
________ is when an external message drives people to feel a need or want to buy a product.
6)
A)
Need creation
B)
Want creation
C)
Indirect advertising
D)
Manipulation
E)
Demand creation
7)
For an advertisement to be ruled deceptive, the deception must influence consumers’ decision
making about products and services, which is known as ________.
7)
A)
puffery
B)
influence
C)
material injury
D)
double jeopardy
E)
misleading
8)
________ advertising features a product other than the primary, and usually controversial, product.
8)
A)
Stealth
B)
Deceptive
C)
Indirect
D)
Unfair
E)
Injurious
9)
Ads that present women as obsessed with men treat women ________.
9)
A)
as pumpkins
B)
fairly
C)
as sweetcakes
D)
as sexual objects
E)
as homosexuals
10)
Which of the following is NOT one of the American Association of Advertising Agencies’ Ten
Guidelines for Comparative Advertising?
10)
A)
The identification should be for honest comparison purposes and not simply to upgrade by
association.
B)
The property being compared should be significant in terms of value or usefulness of the
product to the consumer.
C)
When a competitive product is named, it should be one that exists in the marketplace as
significant competition.
D)
Should not include statements, suggestions, or pictures offensive to public decency or
minority segments of the population if they do not use the competitive product.
E)
The intent and connotation of the ad should be to inform and never to discredit or unfairly
attack competitors, or competing products or services.
11)
A spot for Just for Feet that showed a barefoot black man running through the wilderness tracked
by a patrol in a Humvee was considered objectionable ________.
11)
A)
because it was targeting African Americans
B)
because it was a misleading advertisement
C)
because it was offensive and in bad taste
D)
because it made viewers feel inferior about their body and self–image
E)
because it was racial stereotyping
12)
Under the ________ companies/plaintiffs are required to prove five elements to win a false
advertising lawsuit about an ad making a comparative claim.
12)
A)
Magnuson–Moss Warranty Act
B)
Uniform Commercial Code
C)
Wheeler–Lea Amendment
D)
Lanham Act
E)
Pure Food and Drug Act
13)
Which arm of the federal government interprets laws regarding advertising?
13)
A)
Congress
B)
executive (the president)
C)
courts
D)
Federal Trade Commission
E)
Federal Communications Commission
14)
________ legislate(s) laws while ________ interpret(s) those laws in specific situations.
14)
A)
The president; courts
B)
The president; Congress
C)
Congress; the FTC
D)
Congress; courts
E)
Courts; Congress
15)
Controls for copyright protection are provided by the ________.
15)
A)
Federal Trade Commission
B)
Library of Congress
C)
Department of Commerce
D)
Supreme Court
E)
Patent and Trademark Office
5
16)
Which is NOT an element of the FDA’s 1996 restrictions with regard to tobacco advertising?
16)
A)
a ban on outdoor ads within 1,000 feet of a school or playground
B)
half of the money from the Master settlement Agreement goes to fund TV and print ads
warning children about the dangers of smoking
C)
$150 million be provided to fund antismoking ads targeting children
D)
a ban on all in–store advertising inside of stores that are located within 1,000 feet of a school
or playground
E)
ads limited to black–and–white, text only, in magazines with 55 percent readership under the
age of 18
17)
Which of the following statements regarding cease–and–desist orders issued by the Federal Trade
Commission is false?
17)
A)
A cease–and–desist order given to one firm is applicable to all firms in an industry.
B)
The process leading to the issuance of a cease–and–desist order is similar to a court trial.
C)
An advertiser can appeal the order to the full five–member commission.
D)
They require that the deceptive or unfair practice by a business be stopped within 30 days of
issuance of the order.
E)
A cease–and–desist order is the first step in the regulation process after the FTC determines
that an ad is deceptive.
18)
Which is NOT an organization with oversight responsibility for advertising?
18)
A)
competition
B)
media
C)
government
D)
public or community groups
E)
all of the above have oversight responsibility for advertising
19)
If the National Advertising Review Board (NARB) and the allegedly deceptive advertiser cannot
reach a satisfactory resolution, the case might be referred to the ________.
19)
A)
National Advertising Division (NAD)
B)
American Advertising Federation (AAF)
C)
appropriate government agency, such as the FTC
D)
Advertising Review Council (ARC)
E)
American Association of Advertising Agencies (4As)
20)
Ads that play on women’s insecurities by portraying perfect looking women who are unnaturally
thin are examples of ________.
20)
A)
violating another company‘s trademark
B)
deceptive advertisements
C)
body image
D)
inexpensive ads to produce
E)
effective advertisements
C
21)
________ speech is speech that promotes a commercial activity.
21)
A)
Free
B)
Political
C)
Commercial
D)
Regulated
E)
Unregulated
C
C
22)
The main concern the FTC has when an advertiser substitutes for products during a demonstration
(i.e., using a mixture of glue and water instead of ice cream) is ________.
22)
A)
whether the consumer knows substitutes are used in the demonstration
B)
whether the demonstration falsely upgrades the consumers’ perception of the advertised
brand
C)
whether the demonstration is realistic
D)
whether the advertiser indicates that substitutes are used in the demonstration
E)
whether the demonstration exaggerates the qualities of the product being demonstrated
23)
________ motivates a business to perform a useful function within society and to make its impact
on society positive rather than negative.
23)
A)
Social ethics
B)
Moral compass
C)
Professional standards
D)
Social responsibility
E)
Personal ethics
24)
All EXCEPT which of the following have governmental authority concerning regulation of
advertising in some way?
24)
A)
Federal Communications Commission
B)
National Advertising Division
C)
U.S. Postal Service
D)
Food and Drug Administration
E)
Bureau of Alcohol, Tobacco, and Firearms
25)
Advertising intended to mislead consumers by making claims that are false or by failure to make
full disclosure of important facts, or both, is known as ________.
25)
A)
misleading advertising
B)
indirect advertising
C)
deceptive advertising
D)
injurious advertising
E)
unsubstantiated advertising
26)
Businesses can seek damages from an advertiser who “misrepresents the nature, characteristics,
qualities, or geographic origin in comparative advertising” under the ________.
26)
A)
Pure Food and Drug Act
B)
Magnuson–Moss Warranty Act
C)
Lanham Act
D)
Wheeler–Lea Amendment
E)
Uniform Commercial Code
27)
In which case did the Supreme Court signal strong protection for commercial speech under the
First Amendment?
27)
A)
Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980)
B)
44 Liquormart, Inc. v. Rhode Island (1995)
C)
Valentine v. Christensen (1942)
D)
Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976)
E)
Cincinnati v. Discovery Network (1993)
28)
Why has the amount of prescription drug advertising skyrocketed in the past few years?
28)
A)
The FTC loosened its controls on pharmaceutical companies.
B)
Patents held by many pharmaceutical companies expired, resulting in price competition and
heavy advertising.
C)
Demographic shift in U.S. population reflects an aging population, and they tend to be heavy
users of prescription drugs causing more competition in the industry and thus more
advertising.
D)
The FCC loosened its controls on pharmaceutical companies.
E)
The FDA loosened its controls on pharmaceutical companies.
29)
Government oversight responsibility with respect to advertising includes ________.
29)
A)
complaints and punishment
B)
trademarks and copyrights
C)
laws and regulations
D)
self–regulation
E)
standards and reviews
30)
Some claim advertising has created a society that is obsessed with personal hygiene because
consumers are bombarded with ads for products that remove our body odors, make our teeth
white, make our hair shine, allow us to fit in with our peers, and make our family love us more. On
what side of the social debate on advertising do believers of this statement reside?
30)
A)
advertising manipulates social values
B)
advertising mirrors social values
C)
advertising is offensive
D)
advertising mimics social values
E)
advertising shapes social values
31)
John works for an advertising agency whose client wants to reach Hispanic consumers living in
Florida and Texas. He decides that one ad execution is sufficient because he believes that all
Hispanics are the same. John is using a(n) ________ to make his decision.
31)
A)
shortcut
B)
stereotype
C)
unethical basis
D)
decision–making process
E)
heuristic
32)
Nike’s longtime symbol on its products and in its ads is the Nike “Swoosh,” which looks like a
curved checkmark. If another athletic shoemaker used that symbol on its products or in its ads, the
company would most likely be guilty of ________.
32)
A)
trademark infringement
B)
competitive infringement
C)
comparative advertising
D)
deceptive advertising
E)
misleading advertising
33)
Verbal or written words in an advertisement that indicate exceptions to the advertising claim made
are known as ________.
33)
A)
small print
B)
disclaimers
C)
endorsements
D)
puffery
E)
comparative ads
34)
The Federal Communications Commission (FCC) can take action against ________.
34)
A)
advertising agencies
B)
the media
C)
advertisers
D)
A, B, and C
E)
B and C
35)
Which type of self–regulation occurs when an organization, such as an advertising agency,
develops, uses, and enforces norms within its own practices?
35)
A)
personal ethic
B)
self–discipline
C)
self–regulation with outside help
D)
social ethic
E)
industry self–regulation
36)
The two operating arms of the National Advertising Review Council are the ________.
36)
A)
NAD and the AAAA
B)
FTC and the FCC
C)
FTC and the NAD
D)
NAD and the NARB
E)
AAF and the AAAA
37)
Cigarette advertising on television and radio has been banned since ________.
37)
A)
1991
B)
1981
C)
1971
D)
2001
E)
1961
38)
Several countries have banned many forms of tobacco advertising. However, the Salem, Benson &
Hedges, and Winston names can found on billboards in one of these countries, but they are not
advertising cigarettes. They are advertising their travel, clothing, and restaurant businesses. What
type of advertising are these companies using to undermine these tobacco–advertising bans?
38)
A)
stealth advertising
B)
unfair advertising
C)
indirect advertising
D)
imperialistic advertising
E)
deceptive advertising
39)
Which Amendment to the U.S. Constitution states that Congress shall make no law “abridging the
freedom of speech or of the press”?
39)
A)
Fifth
B)
Second
C)
Fourth
D)
Third
E)
First
Answer:
40)
Some Asian and Middle Eastern countries are critical of what they see as America’s materialism
and disrespectful behavior toward women and elders and are worried that advertising will
encourage their young people to adopt these viewpoints. The term to describe this phenomenon is
________.
40)
A)
marketing imperialism
B)
marketing ethics
C)
deceptive advertising
D)
social responsibility
E)
social decline
Answer:
Answer:
41)
The ethical responsibility for selling a controversial or unsafe product lies with the ________.
41)
A)
advertising agency
B)
CEO of the organization
C)
Federal Trade Commission
D)
marketing department
E)
advertising director
42)
Mini–Case Question. Although some doctors appreciate that the advertising has caused consumers
to become more active in managing their own health and more informed about their drug options,
some claim that they are being pressured to write inappropriate prescriptions because their
patients are influenced by the drug ad claims. What is this called when an external message, like an
advertisement, causes people to feel a need to buy and use a product?
42)
A)
want creation
B)
manipulation
C)
need creation
D)
indirect advertising
E)
demand creation
43)
Which arm of the federal government legislates laws regarding advertising?
43)
A)
Federal Trade Commission
B)
Congress
C)
executive (the president)
D)
courts
E)
Federal Communications Commission
44)
A ________ is a representation of a cultural group that emphasizes a trait or group of traits that
may or may not communicate an accurate representation of the group.
44)
A)
stereotype
B)
caricature
C)
mean
D)
norm
E)
reference group
45)
Which arm of the National Advertising Review Council is a full–time agency made up of people
from the field of advertising; evaluates complaints submitted by consumers, consumer groups,
industrial organizations, and advertising firms; and does its own industry monitoring of national
advertisements?
45)
A)
American Advertising Federation (AAF)
B)
National Advertising Division (NAD)
C)
American Association of Advertising Agencies (4As)
D)
Federal Trade Commission (FTC)
E)
National Advertising Review Board (NARB)
B
46)
Marketing imperialism, or cultural imperialism, are terms used to describe ________.
46)
A)
how an external message drives people to feel a need or want for a product
B)
how marketers attempt to be ethical
C)
what happens when people in other cultures adopt Western culture
D)
what happens when advertising is effective in creating demand
E)
what happens when Western culture is imposed on others
E
A
47)
In a focus group of women in their 50s, participants objected to health care ads showing older
women with arthritis in sedentary positions. They would prefer to see the women working out in a
gym. This is an example of ________.
47)
A)
deceptive advertising
B)
age–related stereotypes
C)
cultural differences
D)
marketing imperialism
E)
ethnic stereotyping
48)
Which is NOT a basic element of the current FTC policy on deception?
48)
A)
preventable
B)
misleading
C)
injurious
D)
reasonableness
E)
all of the above are basic elements of the current FTC policy on deception
A
49)
The ________ .prohibits unfair and deceptive acts and practices regardless of whether competition
is injured.
49)
A)
formation of the National Advertising Review Council
B)
Wheeler–Lea Amendment
C)
Pure Food and Drug Act
D)
formation of the Bureau of Alcohol, Tobacco, and Firearms
E)
formation of the Federal Trade Commission
B
B
50)
A ________ gives an organization the exclusive right to use or reproduce original work such as an
advertisement or package design for a period of time.
50)
A)
copyright
B)
constitutional amendment
C)
servicemark
D)
brand name
E)
trademark
51)
Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol, but this is
not true. Under which law can Tylenol file a false advertising lawsuit about this false claim?
51)
A)
Lanham Act
B)
Magnuson–Moss Warranty Act
C)
Wheeler–Lea Amendment
D)
Pure Food and Drug Act
E)
FTC Improvement Act
A
52)
What is the primary agency governing the advertising industry?
52)
A)
National Advertising Division
B)
Federal Communications Commission
C)
Food and Drug Administration
D)
National Advertising Review Council
E)
Federal Trade Commission
E
A
53)
Which federal agency was formed to protect the public interest in radio and television broadcast
communications?
53)
A)
Bureau of Alcohol, Tobacco, and Firearms
B)
Federal Communications Commission
C)
Food and Drug Administration
D)
National Advertising Division
E)
Federal Trade Commission
54)
In 1971, what organization did several professional advertising associations in conjunction with the
Council of Better Business Bureaus establish to negotiate voluntary withdrawal of national
advertising that professionals consider deceptive?
54)
A)
National Advertising Review Council (NARC)
B)
American Advertising Federation (AAF)
C)
National Advertising Division (NAD)
D)
National Advertising Review Board (NARB)
E)
American Association of Advertising Agencies (4As)
55)
With respect to guidelines for determining what is ethical, which is NOT one of the types of criteria
for making an advertising decision?
55)
A)
moral systems
B)
internal moral compass
C)
personal ethic
D)
professional ethic
E)
self–discipline
56)
All EXCEPT which of the following are FTC remedies for deception and unfair advertising?
56)
A)
corrective advertising
B)
cease–and–desist orders
C)
consent decrees
D)
consumer redress
E)
incarceration
57)
________ is a set of moral principles that guide actions and create a sense of responsible behavior.
57)
A)
Self–discipline
B)
Social responsibility
C)
Self–regulation
D)
Ethics
E)
Taste
58)
Under the Lanham Act, which of the following is NOT an element a company/plaintiff is required
to prove to win a false advertising lawsuit about an ad containing a comparative claim?
58)
A)
The ads actually deceived or had the tendency to deceive a substantial segment of the
audience.
B)
The offending advertiser intended to damage the complaining company’s business.
C)
Falsely advertised goods are sold in interstate commerce.
D)
The deception was “material” and likely to influence purchasing decisions.
E)
False statements have been made about either product.
59)
The Federal Trade Commission investigated a claim made in an ad for Ultra Slimfast and
determined that the ad is deceptive. What’s the first remedy that will be taken by the FTC?
59)
A)
order the advertiser to refund consumers’ money
B)
issue a cease–and–desist order
C)
fine the advertiser $10,000 for every day the ad has run
D)
require the advertiser to run corrective advertising
E)
issue a consent decree
60)
The ________ is an examples of a moral system.
60)
A)
The Social Ethic
B)
The Ten Commandments
C)
The Responsible Rule
D)
The Golden Ethic
E)
The Personal Rule
61)
A term used to describe what happens when Western culture is imposed on others is known as
________.
61)
A)
cultural imposition
B)
marketing imperialism
C)
marketing elitism
D)
demand creation
E)
marketing imposition