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1. Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1920s that legal doctrines protecting speech when offensive
began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state
law prohibiting a corporation to advertise to influence voters on issues that did not
“materially affect” its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to
receive information and ideas” with the traditional values that underlie free
speech.
IV. According to the Central Hudson decision, “protected commercial speech” cannot
be regulated.
a. I & II only
b. II & III only
c. II, III and IV only
d. I, II III, and IV
2. Citizens have always been afforded freedom of speech after the ratification of the U.S.
Constitution.
a. True
b. False
3. According to John Kenneth Galbraith, the theory of consumer demand is based on the
following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their
wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
a. I only
b. I and II
c. III only
d. II and III
4. The Lanham Act:
I. Focuses on trademark registration and protection.
II. Was passed in reaction to the Great Depression.
III. Gives competitors the right to sue for false claims a rival company makes about
the competitor’s product.
IV. Does not allow a company to sue for false claims a rival company makes about
their own products.
a. I & II only
b. II & III only
c. I, I and III only
d. I, II III, and IV
5. Obesity in children has continued to rise since 1976 and approximately ¾ of all teens and
youth are overweight.
a. True
b. False
6. The “creative revolution” in advertising refers to
a. The move from black and white to color advertising.
b. The move from talking about a product to showing what a product can do.
c. The move from showing what a product can do to making the product a status
symbol.
d. The move from making a product a status symbol to using subliminal messaging to
“force” consumers to buy the product.
7. The debate over advertising fast food and other “junk foods” to kids is in effect settled, since
federal and state laws have put limits on that advertising.
a. True
b. False
8. According to the Learned Intermediary Rule, pharmaceutical manufacturers do not have to
warm consumers about drug dangers as long as they have adequately warned physicians.
a. True
b. False
9. In the case of R.J. Reynolds Tobacco Company, et al. v. FDA, what was the majority opinion
regarding the First Amendment and the graphic warning requirements?
10. What forms can deceptive advertising claims take?
11. Discuss some of the ways the FTC has curbed online marketing efforts.
12. What is the Lanham Act? To succeed in suit under the Lanham Act, what must a plaintiff
prove?
13. Discuss the standards of the Creative Code of the American Associate of Advertising
Agencies.
14. Discuss how the fast food industry’s response to the obesity epidemic in children has
changed since the publication of the Surgeon General’s report.
15. Direct-to-consumer advertising of prescription drugs began in the late 1980’s to early 1990’s.
Based on the information in the Norplant case in the text, discuss the reasons why it should
or should not be allowed.
