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| 1 | |
A number of self-regulatory mechanisms have been established by the business community to control advertising practices. The largest and best known is the: |
| | A) | Federal Trade Commission. |
| | B) | Federal Communications Commission. |
| | C) | Better Business Bureau. |
| | D) | National Advertising Board. |
| | E) | Chamber of Commerce. |
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| 2 | |
The Central Hudson Test: |
| | A) | was used to define unfair advertising prior to the passage of the Wheeler-Lea Amendment. |
| | B) | is used to determine if a sales promotion can be characterized as a contest or if it must be called a lottery. |
| | C) | is used to justify restocking fees. |
| | D) | is a four-part test used to determine restrictions on commercial speech. |
| | E) | can be used to identify the need for corrective advertising. |
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| 3 | |
The Wheeler-Lea Amendment was passed by the U.S. Congress to close a loophole in the: |
| | A) | Sherman Act. |
| | B) | NAD/NARB Act. |
| | C) | Robinson-Patman Act. |
| | D) | Food and Drug Administration Act. |
| | E) | Federal Trade Commission Act. |
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| 4 | |
The Olive Garden restaurant chain uses the slogan, "When you're here, you're family," in all of its advertising. While this slogan is designed to show customers how welcomed they are at the Olive Garden restaurants, it is not intended to be taken literally. Since customers are not really members of the Olive Garden family, the ad slogan is an example of: |
| | A) | deceptive advertising. |
| | B) | superiority advocacy |
| | C) | puffery. |
| | D) | comparative advertising. |
| | E) | noncompetitive advertising. |
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| 5 | |
Have you ever seen ads for weight-loss programs that show before pictures of fat, unattractive people and after pictures of thin, attractive people. The ads generally state that someone who used the product lost some huge amount of weight in only six months. In small print in the ad, there is typically a statement that says this participant's results were not typical of the average user. Why is this statement in smaller print included? |
| | A) | To avoid puffery |
| | B) | To substantiate the advertising |
| | C) | To reduce the possibility of competitors using negative comparative advertising |
| | D) | To adhere to the FTC's requirements for affirmative disclosures |
| | E) | To deceive consumers |
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| 6 | |
How has the FTC's substantiation program affected the advertising industry? |
| | A) | It shifted the burden of proof for ad claims from the commission to the advertiser. |
| | B) | It created an environment in which comparative advertising is legal and ethical. |
| | C) | It created a simple four-way test that can be used by agencies, advertisers, and media to determine if an ad is deceptive. |
| | D) | It encouraged professionals to engage in advertising. |
| | E) | It required the media to provide specific time and space allocations to public service announcements. |
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| 7 | |
Assume the FTC has determined that an advertiser's ad is deceptive. The FTC will then issue a _____ and to address the problem of residual effect it may require _____. |
| | A) | commercial speech injunction; corrective advertising |
| | B) | consent order; competitive advertising |
| | C) | cease-and-desist order; corrective advertising |
| | D) | consent order; an advertising ban |
| | E) | trade regulation ruling; a cease-and-desist order |
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| 8 | |
The Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. This represents implementation of the _____ Doctrine. |
| | A) | Substantial Omission |
| | B) | Misinterpretation |
| | C) | Affirmative Disclosure |
| | D) | Fairness |
| | E) | Substantiation |
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| 9 | |
Marius has received an opportunity in the mail to receive $5 million if he will send $5,000 to the first name and address on a list that is enclosed with the mailing. Which federal regulatory agency would be most interested in examining this direct-mail advertising? |
| | A) | U.S. Postal Service |
| | B) | Federal Communications Commission |
| | C) | Bureau of Alcohol, Tobacco and Firearms |
| | D) | Food and Drug Administration |
| | E) | Better Business Bureau |
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| 10 | |
The Children's Online Privacy Act of 1998: |
| | A) | is enforced by the Network Advertising Initiative. |
| | B) | monitors the type of e-mail sent to teenagers and children. |
| | C) | places tight restrictions on collecting information from children via the Internet. |
| | D) | requires all schools to use software to control students' access to certain Web sites. |
| | E) | was passed but never implemented. |
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