Question 1

The goal of affirmative disclosure is to

Accepted Answer

A)  avoid ads that might be offensive or misleading to consumers.
B)  give consumers sufficient information to make an informed decision.
C)  protect advertisers from suits involving accuracy of advertising claims.
D)  restrict the content of attorney ads and necessitate a disclaimer.
E)  enhance consumer confidence in advertisements.F) B) and C)
G) A) and E)

Question 2

Self-regulation and control of advertising emanate from individual advertisers and their agencies.

Accepted Answer

A) True 
 B)False

Question 3

The U.S.Supreme Court established the _____, a four-part test, to determine restrictions on commercial speech.

Accepted Answer

A)  Virginia Consumer Council Test
B)  Free Speech Matrix
C)  First Amendment Analysis
D)  California Test of Affirmation
E)  Central Hudson TestF) All of the above
G) B) and C)

Question 4

Policies and procedures for industry self-regulation are established by the Advertising Self-Regulatory Council.

Accepted Answer

A) True 
 B)False

Question 5

A very frustrating, and often expensive, scenario for both an agency and its client occurs when

Accepted Answer

A)  a commercial is rejected at the storyboard stage.
B)  a commercial that was rejected at the storyboard stage is accepted at the final stage.
C)  a commercial is rejected for reasons such as sex, politics, and religion.
D)  a commercial is approved at the storyboard stage but then is rejected after it is produced.
E)  a commercial is rejected at the idea-generation stage.F) C) and D)
G) A) and E)

Question 6

Advertising on television and radio was initially regulated through codes developed by the _____ until the courts found that portions of its regulations were in restraint of trade.

Accepted Answer

A)  National Advertising Review Board
B)  Federal Trade Commission
C)  Federal Communications Commission
D)  National Association of Broadcasters
E)  Standards and Practices DivisionF) A) and B)
G) A) and C)

Question 7

The Council of Better Business Bureaus plays a major role in controlling advertising practices at the _____ level.

Accepted Answer

A)  national
B)  local
C)  manufacturer
D)  international
E)  regionalF) B) and D)
G) A) and D)

Question 8

Self-regulation of advertising has been ineffective in the development of stringent practices and standards.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Federal Trade Commission.
B)  Federal Communications Commission.
C)  Better Business Bureau.
D)  World Trade Organization.
E)  Chamber of Deputies.F) B) and E)
G) D) and E)

Question 10

If a participant is required to give up something of value in order to participate in a game or sweepstakes, then _____ is present, and the promotion is considered a lottery.

Accepted Answer

A)  misrepresentation
B)  consideration
C)  deception
D)  enticement
E)  remunerationF) B) and E)
G) B) and C)

Question 11

The _____ gave the Federal Trade Commission (FTC)  the power to issue cease-and-desist orders and levy fines on violators.

Accepted Answer

A)  Central Hudson Test
B)  National Advertising Review Board
C)  Lanham Act
D)  Wheeler-Lea Amendment
E)  Sherman Antitrust ActF) D) and E)
G) C) and D)

Question 12

The three major divisions of the Federal Trade Commission (FTC)  are the bureaus of

Accepted Answer

A)  employment, national security, and trade.
B)  governance, compliance, and cooperation.
C)  regulation, restriction, and economic reconstruction.
D)  economics, consumer protection, and competition.
E)  distribution, distillation, and consumer diversity.F) A) and B)
G) A) and E) D

Question 13

Which of the following statements concerning advertising by attorneys is TRUE?

Accepted Answer

A)  The right for attorneys to advertise is protected under the First Amendment.
B)  The U.S.Supreme Court does not permit lawyers to advertise if they earn more than $100,000 per year.
C)  Ads soliciting personal injury victims help in enhancing the public's perception of attorneys.
D)  The American Bar Association recently removed all restrictions on the type of advertising attorneys can use.
E)  Typically, traditional law firms are in favor of using advertising, particularly on TV, because they believe that it might boost a profession's image.F) B) and C)
G) A) and B)

Question 14

Wagner Tire, a manufacturer of tires, is developing an advertising campaign that is set to claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires.The company must conduct careful studies to provide support for the claim because

Accepted Answer

A)  the Federal Trade Commission may sue Wagner for comparative advertising.
B)  Wagner's competitors may sue the company under the Lanham Act if it cannot substantiate its claims.
C)  the Better Business Bureau may sue Wagner if it cannot substantiate its claims.
D)  the Federal Trade Commission may charge Wagner for using puffery, which is an illegal form of advertising.
E)  the consumers may sue the company for the nonsubstantiation of the ad.F) A) and D)
G) All of the above B

Question 15

Alyssa was asked to edit her team's testimonial ad so it would include a disclosure that said "results not typical." Which agency scrutinizes the use of testimonial ads and asks for this type of disclosure in situations where the outcomes vary substantially?

Accepted Answer

A)  US Post Office
B)  Supreme Court
C)  FCC
D)  FTC
E)  Trademark RegistrarsF) B) and D)
G) A) and B) D

Question 16

Cease-and-desist orders

Accepted Answer

A)  are used to regulate public service announcements.
B)  require an advertiser to run comparative advertisements.
C)  are issued by the Federal Trade Commission.
D)  are made legally binding by the Robinson-Patman Act.
E)  do not impose punishments upon violation.F) A) and B)
G) C) and E)

Question 17

Which of the following statements is TRUE of advertising by members of professional associations?

Accepted Answer

A)  Both government regulatory agencies and consumer groups are against advertising by members of professional associations.
B)  Professional associations have always authorized advertising by their members on the basis that such promotional activities heighten members' professional status.
C)  Research has shown that consumers generally disfavor the use of professional advertising.
D)  The Supreme Court has ruled that professionals, such as dentists and physicians, have the right to advertise.
E)  Professional advertising is typically considered unethical and fraudulent.F) A) and B)
G) C) and D)

Question 18

Which of the following Federal Trade Commission (FTC)  programs requires firms to verify the veracity of product information before making any advertising claims about the product?

Accepted Answer

A)  Corrective advertising
B)  Implied uniqueness
C)  Comparative advertising
D)  Affirmative disclosure
E)  Advertising substantiationF) B) and E)
G) C) and D)

Question 19

Television advertising is

Accepted Answer

A)  typically not used for hard liquor advertising.
B)  regulated through codes developed and enforced by the Federal Trade Commission.
C)  regulated by affiliate networks.
D)  more stringently self-regulated than any other medium.
E)  considered a declining advertising medium.F) All of the above
G) B) and E)

Question 20

The Federal Trade Commission (FTC)  program that requires an advertiser who is found guilty of deceptive advertising to run additional advertising to remedy the deception or misinformation contained in previous ads is known as

Accepted Answer

A)  the fairness doctrine.
B)  ad substantiation.
C)  affirmative disclosure.
D)  corrective advertising.
E)  the puffery dogma.F) B) and D)
G) All of the above

Exam 20: Regulation of Advertising and Promotion

The goal of affirmative disclosure is to

Correct AnswerverifiedShow Answer

Self-regulation and control of advertising emanate from individual advertisers and their agencies.

Correct AnswerverifiedShow Answer

The U.S.Supreme Court established the _____, a four-part test, to determine restrictions on commercial speech.

Correct AnswerverifiedShow Answer

Policies and procedures for industry self-regulation are established by the Advertising Self-Regulatory Council.

Correct AnswerverifiedShow Answer

A very frustrating, and often expensive, scenario for both an agency and its client occurs when

Correct AnswerverifiedShow Answer

Advertising on television and radio was initially regulated through codes developed by the _____ until the courts found that portions of its regulations were in restraint of trade.

Correct AnswerverifiedShow Answer

The Council of Better Business Bureaus plays a major role in controlling advertising practices at the _____ level.

Correct AnswerverifiedShow Answer

Self-regulation of advertising has been ineffective in the development of stringent practices and standards.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a participant is required to give up something of value in order to participate in a game or sweepstakes, then _____ is present, and the promotion is considered a lottery.

Correct AnswerverifiedShow Answer

The _____ gave the Federal Trade Commission (FTC) the power to issue cease-and-desist orders and levy fines on violators.

Correct AnswerverifiedShow Answer

The three major divisions of the Federal Trade Commission (FTC) are the bureaus of

Correct AnswerverifiedD

Which of the following statements concerning advertising by attorneys is TRUE?

Correct AnswerverifiedShow Answer

Wagner Tire, a manufacturer of tires, is developing an advertising campaign that is set to claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires.The company must conduct careful studies to provide support for the claim because

Correct AnswerverifiedB

Alyssa was asked to edit her team's testimonial ad so it would include a disclosure that said "results not typical." Which agency scrutinizes the use of testimonial ads and asks for this type of disclosure in situations where the outcomes vary substantially?

Correct AnswerverifiedD

Cease-and-desist orders

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE of advertising by members of professional associations?

Correct AnswerverifiedShow Answer

Which of the following Federal Trade Commission (FTC) programs requires firms to verify the veracity of product information before making any advertising claims about the product?

Correct AnswerverifiedShow Answer

Television advertising is

Correct AnswerverifiedShow Answer

The Federal Trade Commission (FTC) program that requires an advertiser who is found guilty of deceptive advertising to run additional advertising to remedy the deception or misinformation contained in previous ads is known as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified