Chapter 20 – Regulation of Advertising and Promotion
1. (p. 684) Advertisers are often supportive of voluntary self-regulation because:
2. (p. 684) Self-regulation begins with the interaction of client and agency when:
Chapter 20 – Regulation of Advertising and Promotion
3. (p. 685) In 1977, the _____ ruled that restrictions on advertising by lawyers are
unconstitutional and that they have a First Amendment right to advertise.
4. (p. 685) Which of the following statements about advertising by attorneys, dentists and
physicians is true?
Chapter 20 – Regulation of Advertising and Promotion
5. (p. 685) Which of the following statements concerning advertising by attorneys is true?
6. (p. 686) A number of self-regulatory mechanisms have been established by the business
community in an effort to control advertising practices and among them the largest and best
known is the ____.
Chapter 20 – Regulation of Advertising and Promotion
7. (p. 686) BBB is the largest and best known self-regulatory mechanism in United States, for
controlling advertising practices, that has been established by the business community. BBB
stands for:
8. (p. 688) Better Business Bureaus provide control over advertising practices at a _____ level
while the Council of Better Business Bureaus plays a major role in controlling advertising
practices at a(n) _____ level.
Chapter 20 – Regulation of Advertising and Promotion
9. (p. 688) The _____ was formed by three advertising associations and the Council of Better
Business Bureaus to sustain high standards of truth, accuracy, morality and social
responsibility in national advertising.
10. (p. 688) The _____ accepts cases dealing with product performance claims, superiority
claims against competitive products, and all kinds of scientific and technical claims made in
national advertising.
Chapter 20 – Regulation of Advertising and Promotion
11. (p. 688) Which of the following statements describes the NAD/NARB review process?
12. (p. 688) The _____ examines advertising claims in direct-response advertising, including
infomercials and home-shopping channels.
Chapter 20 – Regulation of Advertising and Promotion
13. (p. 690) The advertising industry’s most effective self-regulatory mechanism is the:
14. (p. 688) Policies and procedures for self-regulation of advertising industry are established by
the ____.
Chapter 20 – Regulation of Advertising and Promotion
15. (p. 688) Which of the following is the appellate unit of the National Advertising Review
Council?
16. (p. 689) If an advertiser refuses to comply with rulings made by the National Advertising
Review Board (NARB), the NARB is most likely to:
Chapter 20 – Regulation of Advertising and Promotion
17. (p. 690) The NARC became involved in the self-regulation of electronic retailing when it
initiated the:
18. (p. 690) The _____ is sponsored by the Electronic Retailing Association (ERA), although it
works independently of the ERA to create an unbiased self-regulatory system.
Chapter 20 – Regulation of Advertising and Promotion
19. (p. 690) Which of the following statements is true about National Advertising Review
Council (NARC)?
20. (p. 691) The _____ is a major trade association of the advertising business in the United
States. It has its own standards of practice and creative code.
Chapter 20 – Regulation of Advertising and Promotion
21. (p. 691) Which of the following statements describes the media’s role in the self-regulation of
advertising?
22. (p. 691; 692) The reason a magazine such as ‘Good Housekeeping’ regularly tests products and
offers a “seal of approval” is to:
Chapter 20 – Regulation of Advertising and Promotion
23. (p. 692) Advertising on television and radio was regulated for many years through codes
developed by the _____ until the courts found some of its regulations served to restrain trade.
24. (p. 692) Which of the following media has the most stringent review and approval process
for advertising?
Chapter 20 – Regulation of Advertising and Promotion
25. (p. 692) Television advertising:
26. (p. 692) A very frustrating, and often expensive, scenario for both an agency and its client
occurs when:
Chapter 20 – Regulation of Advertising and Promotion
27. (p. 692) Which of the following statements about self – regulation by media is true?
28. (p. 693) The three major participants in the advertising process that work individually and
collectively to encourage truthful, ethical, and responsible advertising are:
Chapter 20 – Regulation of Advertising and Promotion
29. (p. 694) ____, as defined by the First Amendment to the U.S. Constitution, is the most basic
federal law governing advertising in the United States.
30. (p. 694) The courts have extended First Amendment protection to:
Chapter 20 – Regulation of Advertising and Promotion
31. (p. 694) Commercial speech is most accurately defined as:
32. (p. 695) The U.S. Supreme Court established the ____, a four-part test, to determine
restrictions on commercial speech.
Chapter 20 – Regulation of Advertising and Promotion
33. (p. 695) Federal regulation of advertising originated in 1914 with the passage of the _____
Act.
34. (p. 696) Under the original Federal Trade Commission Act of 1914, the FTC:
Chapter 20 – Regulation of Advertising and Promotion
35. (p. 696) The _____ empowered the Federal Trade Commission to regulate unfair or
deceptive practices including those in advertising.
36. (p. 696) The _____ gave the FTC the power to issue cease-and-desist orders and levy fines
on violators.
Chapter 20 – Regulation of Advertising and Promotion
37. (p. 696) Three major divisions of the Federal Trade Commission are the Bureaus of:
38. (p. 696) Which division of the Federal Trade Commission would deal with antitrust and
consumer protection investigations?
Chapter 20 – Regulation of Advertising and Promotion
39. (p. 696) The _____ is the division of the Federal Trade Commission that is responsible for
investigating cases involving deceptive or misleading advertising.
40. (p. 696) Which of the following divisions of the Federal Trade Commission protects
consumers from deceptive and unsubstantiated advertising and enforces the provisions of the
FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the
national and regional level?