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160) Small businesses employ about ________ of all private-sector employees.
A) one-quarter
B) one-third
C) one-half
D) three-quarters
E) 90 percent
161) Small businesses account for ________ of the gross domestic product (GDP).
A) 21 percent
B) 32 percent
C) 46 percent
D) 68 percent
E) 82 percent
162) The restrictions that state and federal laws place on business with regard to the conduct of
its activities are referred to as
A) jurisprudence.
B) competitive constraints.
C) barriers to entry.
D) restraints of trade.
E) regulation.
163) Regulation refers to
A) the restrictions that state and federal laws place on business with regard to the conduct of its
activities.
B) constraints placed on businesses for activities that are legal but unethical.
C) society's values and standards that are enforceable in the courts.
D) requirements concerning which customers a firm may serve or not serve.
E) the moral principles and values that govern the actions and decisions of an individual or
group.
164) An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and
Human Services a $100,000 settlement following an investigation of potential violations of the
Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The
practice posted clinical and surgical appointments for its patients on an Internet-based calendar
that was publicly accessible, which drew complaints for failing to protect health information of
consumers. HIPAA rules are an example of ________ forces in the marketing environment.
A) economic
B) ecological
C) technological
D) social
E) regulatory
165) Visa and MasterCard have recently been accused of violating antitrust laws by improperly
fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services,
creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of
________ forces that affect the marketing environment.
A) economic
B) ecological
C) technological
D) regulatory
E) social
166) The first major federal legislation passed to forbid contracts, combinations, or conspiracies
in restraint of trade in the United States was the
A) Lanham Act.
B) Sherman Antitrust Act.
C) Federal Trade Commission Act.
D) Robinson-Patman Act.
E) Clayton Act.
167) The first major federal legislation passed to forbid actual monopolies or attempts to
monopolize any part of trade or commerce in the United States was the
A) Lanham Act.
B) Federal Trade Commission Act.
C) Robinson-Patman Act.
D) Sherman Antitrust Act.
E) Clayton Act.
168) Which of the following laws has the purpose of protecting competition?
A) Lanham Act
B) Federal Trade Commission Act
C) Fair Trade Act
D) Unfair Practices Act
E) Sherman Antitrust Act
169) The purpose of the Clayton Act is to
A) provide incentives for interstate commerce.
B) forbid actions that are likely to lessen competition, although no actual harm has yet occurred.
C) exact compensation from firms found guilty of violating fair trade practices.
D) repeal provisions of the Sherman Antitrust Act that stifled innovation.
E) strengthen the Robinson-Patman Act.
170) The purpose of the ________ is to forbid certain actions that are likely to lessen
competition, although no actual harm has yet occurred.
A) Federal Trade Commission Act
B) Lanham Act
C) Clayton Act
D) Sherman Antitrust Act
E) Robinson-Patman Act
171) Protecting competition is the primary aim of which of these?
A) Prevention and Enforcement Act
B) Clayton Act
C) Federal Trade Commission Act
D) Fair Trade Act
E) Unfair Practices Act
172) The ________ makes it unlawful to discriminate in prices charged to different purchasers of
the same product, where the effect may substantially lessen competition or help to create a
monopoly.
A) Fair Trade Act
B) Clayton Act
C) Lanham Act
D) Robinson-Patman Act
E) Unfair Practices Act
173) The purpose of the Robinson-Patman Act is to
A) outlaw price discrimination for purchasers of the same product.
B) establish regulated monopolies for utilities.
C) protect inventors from having their intellectual property stolen.
D) repeal the Sherman Antitrust Act.
E) provide incentives for interstate commerce.
174) The purpose of patent law is to
A) provide incentives for increased competition and lower prices by limiting the granting of
patents.
B) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print,
perform, or otherwise copy that work.
C) give inventors of new and novel products the right to exclude others from making, using, or
selling products that infringe the patented invention.
D) guarantee the quality and safety of any product produced or distributed in the United States.
E) level the playing field between inventors who work for large corporations and those who
work on their own.
175) A company can protect its competitive position under ________, which gives inventors of
new and novel products the right to exclude others from making, using, or selling products that
infringe on the invention.
A) copyright law
B) patent law
C) trademark law
D) commercial law
E) antitrust law
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176) The purpose of copyright law is to
A) provide incentives for increased competition.
B) give inventors of new and novel products the right to exclude others from making, using, or
selling products that infringe the patented invention.
C) level the playing field between inventors who work for large corporations and those who
work on their own.
D) guarantee the quality and safety of any product produced or distributed in the United States.
E) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print,
perform, or otherwise copy that work.
177) The purpose of ________ is to give the author of a literary, dramatic, musical, or artistic
work the exclusive right to print, perform, or otherwise copy that work.
A) copyright law
B) patent law
C) trademark law
D) commercial law
E) antitrust law
178) The Digital Millennium Copyright Act, signed in 1998,
A) limits access of children to online material considered to be inappropriate or harmful.
B) improves protection of copyrighted digital products.
C) allows the government to collect taxes if printed materials are sold online.
D) prevents the pirating of digital products that do not have a registered trademark.
E) allows anyone with access to a computer to publish original materials online and seek
remuneration (pay).
179) The Child Protection Act (1966) and the Nutritional Labeling and Education Act (1990) are
examples of
A) pricing-related legislation.
B) laws specifying product requirements.
C) fair trade legislation.
D) distribution-related legislation.
E) government contracts with private firms.
180) All of the following federal laws are designed to protect consumers except which?
A) Consumer Product Safety Act.
B) FTC Act of 1914.
C) Telephone Consumer Protection Act.
D) Digital Millennium Copyright Act.
E) Child Protection Act.
181) The grassroots movement started in the 1960s to increase the influence, power, and rights
of consumers in dealing with institutions is referred to as
A) Naderism.
B) consumerism.
C) green marketing.
D) anticorporate activism.
E) libertarianism.
182) Consumerism refers to
A) a movement of conspicuous consumption that began when World War II ended.
B) conducting business in a way that protects the natural environment while making economic
progress.
C) a collaborative effort between buyers and sellers to create an exchange where each benefit.
D) the recognition of the need for organizations to improve the state of people, the planet, and
profit simultaneously if they are to achieve sustainable, long-term growth.
E) the grassroots movement started in the 1960s to increase the influence, power, and rights of
consumers in dealing with institutions.
183) Which of these laws came about as a response to the 1960s grassroots movement known as
consumerism?
A) Robinson-Patman Act
B) Clayton Act
C) Digital Millennium Copyright Act
D) FTC Act
E) Consumer Product Safety Act
184) Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target
practice areas across the United States. Pentagon officials, in response to environmentalists'
concerns over lead poisoning in the soil, have invested over $12 million to develop an
environmentally safe tungsten bullet. This is an example of one of the outcomes of
A) marketing ethics.
B) consumerism.
C) cause marketing.
D) self-regulation.
E) Naderism.
185) Which of the following legislative actions created a government entity to monitor business
practices and stop unfair ones such as misleading promotions?
A) Robinson-Patman Act
B) Consumer Product Safety Act
C) Lanham Act
D) Federal Trade Commission Act
E) Fair Packaging and Labeling Act
186) The ________ can require a company to spend money on corrective advertising to rectify
previous misleading ads.
A) Food and Drug Administration
B) U.S. Department of Justice
C) Federal Trade Commission
D) Better Business Bureau
E) American Marketing Association
187) Which of the following is an action the Federal Trade Commission (FTC) can take to stop a
company from continuing an unfair trade practice?
A) competitive advertising
B) a cease and desist order
C) a private ruling
D) a consent degree
E) a stay
188) The Federal Trade Commission (FTC) can require a company to spend money to rectify
previous misleading ads with revised information, which is known as
A) corrective advertising.
B) a cease and desist order.
C) an advertising injunction.
D) a 'truth in advertising' order.
E) comparative advertising.
189) There are many diet aids on the market. They promise immediate weight loss without
exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you
pay close attention, you will notice that each ad also contains the statement, "Results may vary."
Most likely this statement is included to prevent the Federal Trade Commission (FTC) from
requiring the dietary aid distributor to
A) engage in self-regulation.
B) engage in comparative advertising.
C) issue an advertising injunction.
D) guarantee truth in advertising.
E) run corrective advertising.
190) For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required
to include the following statement in all television advertisements for Listerine: "Listerine will
not help prevent colds or sore throats or lessen their severity." The Federal Trade Commission
(FTC) imposed this requirement because previous advertising had caused consumers to believe
Listerine was effective against colds. This is an example of the FTC action known as
A) corrective advertising.
B) deceptive advertising.
C) unethical advertising.
D) cease and desist advertising.
E) self-regulation.
191) It had been the Campbell Soup Co.'s practice to insert clear glass marbles into the bottom of
soup containers used in print advertisements to bring some of the soup's ingredients (e.g.,
noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the
soup. Which agency would monitor such a practice?
A) Food and Drug Administration
B) U.S. Department of Justice
C) Federal Trade Commission
D) Better Business Bureau
E) American Marketing Association
192) Recent legislation including the Telephone Consumer Protection Act and the Controlling
the Assault of Non-solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are
A) promotion-related.
B) price-related.
C) distribution-related.
D) self-regulated.
E) product-related.
193) The Lanham Act (1946)
A) prevents someone from using a trademark on a noncompeting product.
B) protects the consumer from product defects.
C) provides for registration of a company's trademarks.
D) allows a company to secure rights to a name before its actual use.
E) facilitates the protection of U.S. trademark rights throughout the world.
194) The ________ provides for registration of a company's trademark, such as the Nike swoosh.
A) Lanham Act
B) Patent Act
C) Clayton Act
D) Sherman Antitrust Act
E) The FTC Act
195) The two major purposes for any trademark statute are to
A) (1) protect the investment of energy, time, and money that the owner of a trademark has
invested in the development of the product and (2) guarantee the owner of the trademark
complete rights to his or her work for the duration of the owner's lifetime.
B) (1) protect the inventor's individual rights and (2) provide the company with the maximum
profits possible.
C) protect the rights of the inventor both here and abroad.
D) (1) protect the public so consumers will get the product wanted and requested and (2) protect
the government so it will be able to collect its fair share of taxes from the revenues generated.
E) (1) protect the firm selling the trademarked product from infringers and (2) protect the
consumer buying the product by allowing him to correctly identify the product he wants.
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196) The Lanham Act cannot protect the rights to a trademark if
A) the company is accused of violating the Sherman Antitrust Act.
B) the product patent is less than 17 years old.
C) the word, name, or symbol has become generic.
D) the statute of limitations has run out.
E) the government refuses to enforce violations.
197) Though registration under the Lanham Act provides important advantages to a trademark
owner,
A) copyright protection is preferred for most branding in the United States.
B) foreign firms are not allowed to register.
C) it has resulted in an anticompetitive environment for domestic firms.
D) patent law is preferred for most branding in the United States.
E) it does not confer ownership.
198) The popular cupcake chain Sprinkles, which launched in Southern California in 2005,
recently settled a trademark infringement lawsuit against a Connecticut bakery that was calling
itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it
was apparently violating provisions of the
A) Consumer Product Safety Act.
B) Consumer Bill of Rights.
C) Lanham Act.
D) Sherman Antitrust Act.
E) CAN-SPAM Act.
