Question 1

Ethics are moral principles that serve as guidelines for both individuals and organizations.

Accepted Answer

A) True 
 B)False

Question 2

When the Federal Trade Commission insists that a company stop making a false claim in an advertisement and that company agrees to stop, it is an example of a(n) :

Accepted Answer

A)  legal review.
B)  cease and desist order.
C)  administrative complaint.
D)  consent order.

Question 3

Anyone can file a complaint to the FTC concerning what someone deems to be a deceptive or misleading advertising or marketing practice.

Accepted Answer

A) True 
 B)False

Question 4

Occasionally the FTC bypasses its typical process and uses the court system to stop an unfair marketing practice. Of the following, which would be the most likely to trigger this type of action?

Accepted Answer

A)  A company violates an FTC cease and desist order
B)  A full commission of the FTC is not available to hear a case
C)  A company violates a consent order
D)  A company appeals a consent order

Question 5

The Federal Communications Commission is responsible for monitoring television advertising directed to children, in terms of the number of minutes per hour that are directed to children.

Accepted Answer

A) True 
 B)False

Question 6

The FTC test of substantiation requires:

Accepted Answer

A)  a comparison of marketing claims made by competing firms.
B)  the use of a code of ethics.
C)  data, facts, or competent and reliable evidence.
D)  testimony from an expert in the field.

Question 7

The substantiation test for false and misleading advertising requires:

Accepted Answer

A)  scientific tests.
B)  consumer testimonials.
C)  competent and reliable evidence.
D)  the average person to be convinced it is not false and misleading.

Question 8

The first step a firm can take to end a FTC investigation of a complaint is the signing of a consent order.

Accepted Answer

A) True 
 B)False

Question 9

Describe a corrective advertising order made by the Federal Trade Commission (FTC).

Accepted Answer

The order is made in rare situations whe...

Question 10

One common complaint of advertising is that it causes people to buy more than they can afford.

Accepted Answer

A) True 
 B)False

Question 11

An administrative complaint is:

Accepted Answer

A)  a formal proceeding before an administrative law judge used by the Federal Trade Commission.
B)  a formal hearing before the Court of Appeals.
C)  a formal hearing before the full Federal Trade Commission.
D)  used by the National Advertising Review Board when the NAD cannot solve a complaint.

Question 12

A form of law present in many Islamic countries is which type of law?

Accepted Answer

A)  Moral
B)  Theocratic
C)  Civil
D)  Common

Question 13

From a company's perspective, the primary benefit of using cookie technology is it allows the marketing team to:

Accepted Answer

A)  gather information about where a consumer has been on the company's website, how long they were there, and what they did.
B)  know what other sites a person has visited on the internet.
C)  prepare specific marketing messages and emails to consumers based on their browsing behavior.
D)  know who has visited the company's website.

Question 14

Indirect ambush marketing occurs when:

Accepted Answer

A)  firms intentionally design advertising or marketing campaigns to capitalize on a major sporting event.
B)  a brand is associated with a major sporting event without any intentional or indirect effort on the part of the brand.
C)  a brand suggests or hints it is associated with a major sporting event when it is not.
D)  consumers are enticed to look at a product by individuals without the individuals realizing the person making the sales pitch is being paid or compensated by the brand.

Question 15

Which industry agency monitors all forms of advertising directed toward children?

Accepted Answer

A)  National Advertising Division
B)  Children's Advertising Review Unit
C)  Federal Trade Commission
D)  Council of Better Business Bureaus

Question 16

A "typical person" must believe the content of an advertisement to be false in order for the Wheeler-Lea Amendment to apply.

Accepted Answer

A) True 
 B)False

Question 17

The Wheeler-Lea Amendment to the FTC Act:

Accepted Answer

A)  regulates excessive advertising to children.
B)  prohibits deceptive and misleading advertising.
C)  prohibits puffery and comparative advertising.
D)  sets the substantiation requirements that an ad must meet when claims are made about a product.

Question 18

A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

Accepted Answer

A) True 
 B)False

Question 19

The Federal Communications Commission places limits on advertising to children on weekends, but not on weekdays.

Accepted Answer

A) True 
 B)False

Question 20

If a complaint concerning false or misleading advertising is referred to the Better Business Bureau, the complaint would first be heard by the National Advertising Review Board (NARB).

Accepted Answer

A) True 
 B)False

Exam 14: Regulations and Ethical Concerns

A "typical person" must believe the content of an advertisement to be false in order for the Wheeler-Lea Amendment to apply.

Correct AnswerverifiedShow Answer

When the Federal Trade Commission insists that a company stop making a false claim in an advertisement and that company agrees to stop, it is an example of a(n) :

Correct AnswerverifiedShow Answer

The first step a firm can take to end a FTC investigation of a complaint is the signing of a consent order.

Correct AnswerverifiedShow Answer

The Federal Communications Commission places limits on advertising to children on weekends, but not on weekdays.

Correct AnswerverifiedShow Answer

If a complaint concerning false or misleading advertising is referred to the Better Business Bureau, the complaint would first be heard by the National Advertising Review Board (NARB).

Correct AnswerverifiedShow Answer

The FTC test of substantiation requires:

Correct AnswerverifiedShow Answer

Indirect ambush marketing occurs when:

Correct AnswerverifiedShow Answer

Describe a corrective advertising order made by the Federal Trade Commission (FTC).

Correct AnswerverifiedThe order is made in rare situations whe...View AnswerShow Answer

Anyone can file a complaint to the FTC concerning what someone deems to be a deceptive or misleading advertising or marketing practice.

Correct AnswerverifiedShow Answer

The substantiation test for false and misleading advertising requires:

Correct AnswerverifiedShow Answer

From a company's perspective, the primary benefit of using cookie technology is it allows the marketing team to:

Correct AnswerverifiedShow Answer

Occasionally the FTC bypasses its typical process and uses the court system to stop an unfair marketing practice. Of the following, which would be the most likely to trigger this type of action?

Correct AnswerverifiedShow Answer

One common complaint of advertising is that it causes people to buy more than they can afford.

Correct AnswerverifiedShow Answer

The Federal Communications Commission is responsible for monitoring television advertising directed to children, in terms of the number of minutes per hour that are directed to children.

Correct AnswerverifiedShow Answer

An administrative complaint is:

Correct AnswerverifiedShow Answer

A form of law present in many Islamic countries is which type of law?

Correct AnswerverifiedShow Answer

A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

Correct AnswerverifiedShow Answer

Ethics are moral principles that serve as guidelines for both individuals and organizations.

Correct AnswerverifiedShow Answer

Which industry agency monitors all forms of advertising directed toward children?

Correct AnswerverifiedShow Answer

The Wheeler-Lea Amendment to the FTC Act:

Correct AnswerverifiedShow Answer

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The order is made in rare situations whe...
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