62)
A ________ is the first step in the regulation process after the FTC determines that an ad is
deceptive.
62)
A)
cease–and–desist order
B)
consent decree
C)
corrective advertising campaign
D)
industry trade rule
E)
consumer redress order
63)
Which is FALSE regarding the Children’s Television Advertising Practice Act of 1990?
63)
A)
Commercial breaks must be clearly distinguished from programming.
B)
It placed a 10.5–minute–per–hour ceiling for commercials in children’s weekend television
programming.
C)
It bars the use of program characters to promote products.
D)
It placed a 12–minute–per–hour limit for commercials in children’s weekday television
programming.
E)
All TV stations must air three hours of children’s educational shows a week.
E
64)
Which of the following is true regarding customs?
64)
A)
Customs are often subtle and, as a result, are easier to violate than laws.
B)
Customs have little impact on the effectiveness of advertising.
C)
Customs are basically the same around the world.
D)
Customs are easily discerned.
E)
Only natives of a culture can ever understand local customs.
A
B
65)
The Supreme Court’s ruling in Central Hudson Gas & Electric Corporation v. Public Service Commission
of New York is significant because ________.
65)
A)
the Supreme Court ruled that states cannot prohibit businesses from advertising prices
B)
the Supreme Court signaled strong protection for companies under the First Amendment
C)
the Supreme Court established a test that determines to what extent the government can
restrict advertising
D)
the Supreme Court decided that the First Amendment does not protect purely commercial
advertising because that type of advertising does not contribute to decision–making in a
democracy
E)
it is the first commercial speech case heard by the Supreme Court
66)
Which of the following is the landmark corrective advertising case?
66)
A)
Cincinnati v. Discovery Network
B)
44 Liquormart, Inc. v FTC
C)
Valentine v. Christensen
D)
Warner–Lambert v. FTC
E)
Nike v. FTC
67)
Mini–Case Question. One ad for a drug used to overcome male erectile dysfunction depicted an
old man in a nursing home acting like a young gigolo chasing after several women at once and was
not allowed to air on the major television networks of NBC, CBS, and ABC. The ad did not contain
any deceptive or unsubstantiated claims, so there was nothing untruthful in the ad. Furthermore,
the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the
major side effects and referring to a magazine ad for more information. How can this happen in the
United States if this is legal advertising of a legal product?
67)
A)
Not all advertising is given the same protection under the First Amendment of the
Constitution.
B)
The behavior portrayed by the old man did not reflect the real behavior of the individual
involved.
C)
The media can reject ads that violate their standards of good taste.
D)
The National Advertising Division determined the ad was distasteful and disallowed it from
being aired on television.
E)
Stereotypes of “dirty old men” are not allowed in any advertising.
68)
When an industry develops, uses, and enforces norms, this is known as which type of
self–regulation?
68)
A)
industry self–regulation
B)
self–discipline
C)
personal ethic
D)
professional ethic
E)
social ethic
69)
Which of the following is true regarding a trademark?
69)
A)
It gives an organization the exclusive right to use or reproduce original work such as an
advertisement or package design for a period of time.
B)
It must be registered with the Federal Trade Commission, which gives the organization
exclusive use of the mark, as long as the trademark is maintained as an identification for a
specific product.
C)
Controls for protection are provided by the Library of Congress.
D)
It identifies the seller’s brand and differentiates it from the brands of other sellers.
E)
The Department of Labor protects unique trademarks from infringement by competitors.
70)
Which federal agency oversees package labeling, ingredient listing, and advertising for food and
drugs?
70)
A)
Food and Drug Administration
B)
Federal Communications Commission
C)
National Advertising Division
D)
Bureau of Alcohol, Tobacco, and Firearms
E)
Federal Trade Commission
Explanation:
71)
Before an advertising agency can create an ad for a client, it must consider which of the following
concerning the client company?
71)
A)
its available resources
B)
its product line
C)
its reputation
D)
the nature of the client company and its mission
E)
all of the above
Explanation:
Explanation:
72)
If the National Advertising Division (NAD) and the allegedly deceptive advertiser cannot reach a
satisfactory resolution, the case is referred to the ________.
72)
A)
American Advertising Federation (AAF)
B)
National Advertising Review Board (NARB)
C)
appropriate government agency
D)
American Association of Advertising Agencies (4As)
E)
Federal Trade Commission (FTC)
73)
The question of whether advertising creates social values rather than merely reflecting them is
known as ________.
73)
A)
the personal–versus–cumulative debate
B)
the shape–versus–mirror debate
C)
the personal–versus–social debate
D)
the social–versus–economic debate
E)
the competitive–versus–market power debate
74)
All EXCEPT which of the following are key ethical issues discussed in this chapter?
74)
A)
targeting strategies
B)
stereotyping
C)
taste and offensive advertising
D)
problems with advertising claims and other message strategies
E)
unfair acts and practices
75)
Advertising’s economic role has been criticized in the way it creates ________, which means people
want or feel a need to buy and use a product.
75)
A)
profit
B)
desires
C)
markets
D)
demand
E)
motives
76)
Which is NOT a responsibility of the Federal Trade Commission?
76)
A)
initiate investigations against companies that engage in unfair competition or deceptive
practices
B)
oversee package labeling and ingredient listings for food and drugs
C)
fine people or companies that violate either a trade regulation rule or a cease–and–desist
order given to any other firm in the industry
D)
regulate acts and practices that deceive businesses or consumers and issue cease–and–desist
orders where such practices exist
E)
fund participation of consumer groups and other interest groups in rule–making proceedings
77)
A ________ identifies how professionals in the industry should respond when faced with ethical
questions.
77)
A)
code of standards
B)
code of responsibility
C)
code of behavior
D)
code of laws
E)
code of discipline
78)
Which of the following statements is FALSE regarding commercial speech?
78)
A)
It is legal to ban false or misleading commercial speech.
B)
It is legal to ban truthful commercial speech.
C)
It is speech that promotes commercial activity.
D)
Its protection under the U.S. Constitution is absolute.
E)
It is often restricted.
79)
Which is NOT included in the concept of social responsibility?
79)
A)
avoiding practices that hurt society
B)
avoiding practices that hurt the environment
C)
treating foreigners in our country as though they are Americans
D)
avoiding practices that hurt the community
E)
treating employees and other stakeholders with sensitivity
80)
Mini–Case Question. An advertisement by the manufacturer of Flonase, a prescription allergy
nasal spray, compared its product with another nasal spray on the market, Nasonex, and claimed
that it controlled allergy symptoms for a longer period of time. The ad was effective, resulting in a 2
percent increase in market share for Flonase. Manufacturers of Nasonex claimed that the
advertisement misrepresented their product and basically made a false comparison. Under which
law, can the manufacturer of Nasonex seek damages from the manufacturer of Flonase?
80)
A)
FTC Improvement Act
B)
Lanham Act
C)
Pure Food and Drug Act
D)
Wheeler–Lea Amendment
E)
Federal Trade Commission Act
81)
Personal judgment and moral reasoning rest on ________.
81)
A)
a code of standards
B)
a sense of right and wrong
C)
membership in a professional association
D)
an understanding of the law
E)
explicit laws governing practice
82)
A brand, corporate, or store name or a distinctive symbol that identifies the seller’s brand and thus
differentiates it from the brands of other sellers is known as a ________.
82)
A)
brand name
B)
trademark
C)
trade dress
D)
copyright
E)
logo
83)
________ is advertising or other sales representations that praise the item to be sold with subjective
opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.
83)
A)
Comparative advertising
B)
Puffery
C)
Indirect advertising
D)
Manipulative advertising
E)
Deceptive advertising
B
84)
When Kraft foods made a claim that their processed cheese slices contained as much calcium as
that contained in 5 ounces of milk, the Federal Trade Commission pursued it as a deceptive claim.
Although Kraft admitted that a cheese slice did not actually contain as much calcium as claimed
due to processing, the company claimed that its ad was not deceptive because consumer research
indicated that calcium content was not important to consumers when deciding among brands of
cheese. Basically, Kraft’s defense was based on its belief that the misleading claim ________.
84)
A)
did not claim anything different from other cheese manufacturers
B)
was not reasonable from the consumers’ point of view
C)
did not lead to material injury to consumers, and thus it was not deceptive
D)
was not deceptive because the claim was merely false but did not omit any important
information
E)
was not technically misleading if consumers didn’t think it was
C
B
85)
Charley’s Fish Fry restaurant claims it has the “best seafood in town.” What type of claim does the
Federal Trade Commission consider this to be?
85)
A)
puffery
B)
subliminal
C)
comparative
D)
deceptive
E)
indirect
86)
In which case did the Supreme Court establish a test that determines to what extent the
government can restrict advertising?
86)
A)
Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1976)
B)
Cincinnati v. Discovery Network (1993)
C)
Central Hudson Gas & Electric Corporation v. Public Service Commission of New York (1980)
D)
44 Liquormart, Inc. v. Rhode Island (1995)
E)
Valentine v. Christensen (1942)
87)
Mini–Case Question. Pfizer is a large pharmaceutical company that has dramatically increased its
direct–to–consumer television advertising of prescription drugs. However, Pfizer has stringent
in–house ad review procedures, including reviews by agency and client attorneys. Pfizer is
concerned that any claim made in an ad is verifiable and that the ad is executed in good taste. What
type of self–regulation does this illustrate?
87)
A)
voluntary self–regulation
B)
self–regulation with outside help
C)
industry self–regulation
D)
mandatory self–regulation
E)
self–discipline
E
88)
What agreement was reached in 1996 between broadcasters, children’s advocates, and the federal
government?
88)
A)
limiting advertising to 10 minutes per hour in children’s weekend television programming
B)
limiting advertising to 10 minutes per hour in all children’s television programming
C)
limiting advertising to 12.5 minutes per hour in children’s weekday television programming
D)
banning all advertising during children’s television programming
E)
requiring all TV stations to air three hours of children’s educational shows a week
E
89)
Several companies, such as Procter & Gamble, General Foods, and Colgate–Palmolive, have their
own codes of behavior and criteria that determine whether advertisements are acceptable. Which
type of self–regulation is this?
89)
A)
self–discipline
B)
social ethic
C)
self–regulation with outside help
D)
personal ethic
E)
industry self–regulation
90)
The most basic federal law that governs advertising is the ________ Amendment to the U.S.
Constitution.
90)
A)
Third
B)
Second
C)
First
D)
Fifth
E)
Fourth
Answer:
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
91)
You are just starting out in an advertising career and are concerned about making ethical
decisions. What resources are available to help guide you to a “right” decision, and what
type of criteria might you consider when making an advertising decision?
91)
Answer:
92)
Explain the distinctions between ethics and morals.
92)
Answer:
Answer:
93)
List five of the ten American Association of Advertising Agencies’ Ten Guidelines for
Comparative Advertising.
93)
94)
Mini–Case Question. What self–regulatory agency monitors national advertising targeted
at children?
94)
95)
Mini–Case Question. Amy saw a commercial on television for a newer Barbie house than
the one she currently has, and of course, she wanted it. Advertising has been criticized
because it is used to drive people to feel a need or want. What is this called and why is
advertising criticized?
95)
96)
When an advertisement aimed at males portrays females as sexual objects, is it misuse or
good targeting?
96)
97)
In 1997, the Food and Drug Administration loosened its controls on pharmaceutical
companies, and as a result, the amount of prescription drug advertising has skyrocketed.
Discuss some pros and cons regarding this growth in prescription drug advertising.
97)
98)
List three ethical questions, given in the “Practical Tips” box, in terms of the social impact
advertising professionals can ask themselves as they confront ethical dilemmas.
98)
99)
Mini–Case Question. One ad for Barbie showed an animated Barbie character diving off of
a diving board doing flips and twists before landing in a pool. The ad was advertising a
Barbie doll with a diving board that can be attached to the side of a bathtub, and Amy
begged her mother for the doll and got it, but she was very disappointed when the doll did
not perform like she saw in the commercial. She realized she had to hold on to the doll to
make it flip around and dive into the water. What was wrong with this ad?
99)
100)
Procter & Gamble is concerned about a claim made in a rival’s advertisement. P&G thinks
that their claim is deceptive. If P&G does not want to get the government involved in this
dispute, what course of action can P&G take to resolve this issue and what process will be
followed?
100)