Question 1

Which of the following is NOT true of the signing of a FTC consent decree?

Accepted Answer

A)  A hearing will be held by an administrative judge.
B)  By signing it, a firm agrees to end the deceptive advertising practice.
C)  After signing it, if the advertiser continues running the deceptive advertising, it can be fined $10,000 per day.
D)  Most complaints are settled in this way.
E)  If the advertiser refuses to sign, the FTC will issue a cease and desist order.F) B) and C)
G) C) and D)

Question 2

The Federal Trade Commission uses a three-part test to determine whether an advertisement is deceptive or untruthful. List and explain the three parts.

Accepted Answer

The three-part test used by the Federal ...

Question 3

All of the following apply to comparison advertising EXCEPT:

Accepted Answer

A)  companies may be sued by competitors for commercials that unfairly disparage that competitor's brand.
B)  require substantiation of qualities for only your own brand.
C)  the first comparison advertising used was in the 1930s by Chrysler, inviting customers to "try all three."
D)  comparative advertising perceived as unfair by consumers may damage advertising in general.
E)  it may inadvertently promote the competitors' brands.F) All of the above
G) A) and B)

Question 4

The primary investigative bureau of the National Advertising Review Council (NARC)is administered by the Council of Better Business Bureau, Inc. and is called CARU.

Accepted Answer

A) True 
 B)False

Question 5

The use of inappropriate humor, messages in poor taste

Accepted Answer

A) True 
 B)False

Question 6

Proponents of advertising counter the argument that advertising unduly influences people by reminding us that virtually every theory of communication indicates consumers will not take some action solely because of advertising.

Accepted Answer

A) True 
 B)False

Question 7

In a typical model for FTC intervention in an alleged deception, the second step is:

Accepted Answer

A)  be sure there is a formal claim.
B)  a request by the FTC for substantiation from the advertiser.
C)  issuing a cease and desist order.
D)  requesting the advertiser sign a consent decree.
E)  mediation and litigation.F) B) and E)
G) B) and D)

Question 8

Which of the following is NOT an indictment that advertising abuses its power of influence?

Accepted Answer

A)  makes people buy things they don't need
B)  It takes up social causes.
C)  makes people buy things they don't want
D)  lowers people's morals
E)  exploits the most susceptible segments of societyF) A) and E)
G) C) and D)

Question 9

One unintended message communicated in advertising is related to the portrayal of various segments of society.

Accepted Answer

A) True 
 B)False

Question 10

What does it appear the U.S. Supreme Court is saying about commercial aspects to speech?

Accepted Answer

A)  The government must meet a higher standard of public interest before agreeing to any prohibition of commercial speech.
B)  The commercial aspect of speech is removed from rights granted by the First Amendment.
C)  Economic topics are not covered in the First Amendment.
D)  There are no gray areas when it comes to corporate advertising.
E)  Corporate advertising deserves no protection regardless of circumstances.F) A) and B)
G) B) and E)

Question 11

When untrue or misleading advertising is disseminated, the implied relationship between advertiser and consumer is violated, creating ________.

Accepted Answer

The answer of When untrue or misleading advertising is disseminated,...

Question 12

During the era of public awareness public and government regulators began to reject the notion of ________, or anything goes, in the then-unregulated U.S. economic system.

Accepted Answer

The answer of During the era of public awareness public...

Question 13

Which of the following is a tactical category of cause-related marketing?

Accepted Answer

A)  licensing programs
B)  relationship programs
C)  media promotions
D)  franchise opportunities
E)  exploitative effortsF) B) and C)
G) A) and E)

Question 14

A common attempt to control editorial independence is the threat of, or actual withholding of, advertising dollars from that newspaper, magazine, or television program unless the medium makes editorial decisions that are favorable for the company advertising.

Accepted Answer

A) True 
 B)False

Question 15

If the FTC challenges an advertising claim, which the advertiser cannot substantiate, that advertiser is forced to publicly admit wrongdoing and to stop using the advertisement.

Accepted Answer

A) True 
 B)False

Question 16

Which audience segment has lost ground in the struggle for advertising realism?

Accepted Answer

A)  the elderly
B)  women
C)  men
D)  minorities
E)  educatorsF) B) and E)
G) B) and D)

Question 17

The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) Act of 2003 does all of the following EXCEPT:

Accepted Answer

A)  establishes requirements for those who send commercial e-mail.
B)  spells out penalties for spammers.
C)  provides uniform enforcement from state to state.
D)  spells out penalties for companies whose products are advertised in spam.
E)  gives consumers the right to ask e-mailers to stop spamming them.F) A) and B)
G) B) and E)

Question 18

Paid advertising promoting an opinion rather than a product is called a(n)________; they may look like newspaper articles or news TV programming, but must be clearly labeled as advertising.

Accepted Answer

The answer of Paid advertising promoting an opinion rather than...

Exam 24: Economic, Social, and Legal Effects of Advertising

The primary investigative bureau of the National Advertising Review Council (NARC)is administered by the Council of Better Business Bureau, Inc. and is called CARU.

Correct Answer
verified

A common attempt to control editorial independence is the threat of, or actual withholding of, advertising dollars from that newspaper, magazine, or television program unless the medium makes editorial decisions that are favorable for the company advertising.

Correct Answer
verified

All of the following apply to comparison advertising EXCEPT:

Correct Answer
verified

One unintended message communicated in advertising is related to the portrayal of various segments of society.

Correct Answer
verified

During the era of public awareness public and government regulators began to reject the notion of ________, or anything goes, in the then-unregulated U.S. economic system.

Correct Answer
verified

In a typical model for FTC intervention in an alleged deception, the second step is:

Correct Answer
verified

The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) Act of 2003 does all of the following EXCEPT:

Correct Answer
verified

Which of the following is NOT an indictment that advertising abuses its power of influence?

Correct Answer
verified

Paid advertising promoting an opinion rather than a product is called a(n)________; they may look like newspaper articles or news TV programming, but must be clearly labeled as advertising.

Correct Answer
verified

If the FTC challenges an advertising claim, which the advertiser cannot substantiate, that advertiser is forced to publicly admit wrongdoing and to stop using the advertisement.

Correct Answer
verified

Which audience segment has lost ground in the struggle for advertising realism?

Correct Answer
verified

Which of the following is a tactical category of cause-related marketing?

Correct Answer
verified

What does it appear the U.S. Supreme Court is saying about commercial aspects to speech?

Correct Answer
verified

The use of inappropriate humor, messages in poor taste

Correct Answer
verified

The Federal Trade Commission uses a three-part test to determine whether an advertisement is deceptive or untruthful. List and explain the three parts.

Correct Answer
Answered by ExamLex AI
The three-part test used by the Federal ...
View Answer

Which of the following is NOT true of the signing of a FTC consent decree?

Correct Answer
verified

Proponents of advertising counter the argument that advertising unduly influences people by reminding us that virtually every theory of communication indicates consumers will not take some action solely because of advertising.

Correct Answer
verified

When untrue or misleading advertising is disseminated, the implied relationship between advertiser and consumer is violated, creating ________.

Correct Answer
verified

Exam 24: Economic, Social, and Legal Effects of Advertising

The primary investigative bureau of the National Advertising Review Council (NARC)is administered by the Council of Better Business Bureau, Inc. and is called CARU.

Correct AnswerverifiedShow Answer

A common attempt to control editorial independence is the threat of, or actual withholding of, advertising dollars from that newspaper, magazine, or television program unless the medium makes editorial decisions that are favorable for the company advertising.

Correct AnswerverifiedShow Answer

All of the following apply to comparison advertising EXCEPT:

Correct AnswerverifiedShow Answer

One unintended message communicated in advertising is related to the portrayal of various segments of society.

Correct AnswerverifiedShow Answer

During the era of public awareness public and government regulators began to reject the notion of ________, or anything goes, in the then-unregulated U.S. economic system.

Correct AnswerverifiedShow Answer

In a typical model for FTC intervention in an alleged deception, the second step is:

Correct AnswerverifiedShow Answer

The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) Act of 2003 does all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following is NOT an indictment that advertising abuses its power of influence?

Correct AnswerverifiedShow Answer

Paid advertising promoting an opinion rather than a product is called a(n)________; they may look like newspaper articles or news TV programming, but must be clearly labeled as advertising.

Correct AnswerverifiedShow Answer

If the FTC challenges an advertising claim, which the advertiser cannot substantiate, that advertiser is forced to publicly admit wrongdoing and to stop using the advertisement.

Correct AnswerverifiedShow Answer

Which audience segment has lost ground in the struggle for advertising realism?

Correct AnswerverifiedShow Answer

Which of the following is a tactical category of cause-related marketing?

Correct AnswerverifiedShow Answer

What does it appear the U.S. Supreme Court is saying about commercial aspects to speech?

Correct AnswerverifiedShow Answer

The use of inappropriate humor, messages in poor taste

Correct AnswerverifiedShow Answer

The Federal Trade Commission uses a three-part test to determine whether an advertisement is deceptive or untruthful. List and explain the three parts.

Correct AnswerAnswered by ExamLex AIThe three-part test used by the Federal ...View AnswerShow Answer

Which of the following is NOT true of the signing of a FTC consent decree?

Correct AnswerverifiedShow Answer

Proponents of advertising counter the argument that advertising unduly influences people by reminding us that virtually every theory of communication indicates consumers will not take some action solely because of advertising.

Correct AnswerverifiedShow Answer

When untrue or misleading advertising is disseminated, the implied relationship between advertiser and consumer is violated, creating ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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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
Answered by ExamLex AI
The three-part test used by the Federal ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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