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Student name:__________
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) The FTC has the power to enforce antitrust laws when two companies seek to merge.
⊚ true
⊚ false
2) When the FTC recovers money against a company for false or misleading
advertisements, consumers will sometimes get the money returned to them from the FTC as
refunds.
⊚ true
⊚ false
3) The government may regulate the advertising of a completely legal product or service.
⊚ true
⊚ false
4) Under the Lanham Act, an advertiser can force a medium, like a newspaper, to publish an
advertisement.
⊚ true
⊚ false
5) In determining whether an ad is deceptive, the FTC will view it from the perspective of
the most vulnerable consumer.
⊚ true
⊚ false
6) Advertising agencies and mass media can be held responsible for false advertisements.
⊚ true
⊚ false
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7) The FTC requires bloggers or social media influencers to disclose the material
connections they share with a product if they are receiving cash or other in-kind payments to
review or promote it.
⊚ true
⊚ false
MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
8) Commercial speech did not officially receive any First Amendment protection until the
A) 1920s.
B) 1950s.
C) 1960s.
D) 1970s.
9) The United States Supreme Court defines commercial speech as
A) advertisements that include the price of a product.
B) speech that proposes a commercial transaction.
C) advertisements that include the name of a company or manufacturer.
D) speech that specifically and with precision mentions the price of a product.
10) The Children’s Advertising Review Unit is
A) part of the FCC.
B) part of the FTC.
C) a self-regulatory entity.
D) none of the answers is correct.
11) FTC considers it deceptive if an advertiser
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A) makes a false statement.
B) omits important information in an ad.
C) implies a false claim by juxtaposing two statements.
D) all of the answers are correct.
12) An issue in the case of Johanns v. Livestock Marketing Association was
A) the fraudulent advertisement about beef being “guaranteed” to be 100 percent free of
mad cow disease.
B) the fraudulent advertisement about milk being “guaranteed” to be 100 percent free of
bovine growth hormones.
C) the compelled funding of advertising for the beef industry.
D) the marketing of livestock on the Internet by ranchers.
13) Under the commercial speech doctrine, the government must prove that it has what type
of an interest to justify a regulation on truthful advertisement for a lawful product?
A) a compelling interest
B) a substantial interest
C) a probable interest
D) a reasonable interest
14) In Lexmark International, Inc. v. Static Control Components, which factors did the
Supreme Court rule are needed to determine who has standing to file a claim under the Lanham
Act?
A) Courts should apply a zone-of-interests test.
B) Plaintiffs must show a commercial injury was “proximately caused” by the
competitor’s false statements.
C) Plaintiffs must show their lawsuit is motivated by a substantial state interest.
D) Both A and B are correct.
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15) The U.S. Supreme Court has held that commercial speech that truthfully advertises lawful
products receives the same amount of First Amendment protection as which of the following?
A) student speech
B) obscene speech
C) both student speech and obscene speech
D) none of the answers is correct.
FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
16) Under the Junk Fax Protection Act, unsolicited advertisement faxes are banned unless
there is _____ between the sender and recipient.
17) The FTC requires proof by _____ evidence when an advertiser makes a claim relating to
health or safety.
18) An advertisement that makes the claim that a company sells “the hottest fashion in town”
is known as _____.
19) The _____ Act is designed to protect the privacy of children when they visit Web sites
that attempt to collect personal information from them.
20) One of the most notorious individuals who has run afoul of FTC regulations for his
infomercials is a man named _____.
21) Under the Central Hudson test for the commercial speech doctrine, the government
must have evidence that the regulation in question _____ advances the government’s interest.
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22) In December 2015, the FTC issued an enforcement policy pertaining to so-called ______
ads, which are online ads that are made to look like surrounding non-advertising content.
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
23) In the 2018 case Tracy Rifle and Pistol LLC v. Harris, why did a federal court in
California strike down a state ban on handgun advertisements at gun stores?
24) Identify the four key aspects/requirements imposed under the CAN-SPAM Act on
individuals or entities that send commercial e-mail messages.
25) Identify the two critical components of the FTC’s rules against deceptive advertising.
26) Identify the three requirements that the government must satisfy in order to regulate an
advertisement that is not deceptive or does not promote an illegal activity.
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Answer Key
Test name: chapter 15
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