Question 1

Name three types of legal systems in international setting.

Accepted Answer

Common law...

Question 2

A form of law based on a broad set of legal principles and decisions made based on legal codes that have been written over time is which type of law?

Accepted Answer

A)  Moral
B)  Theocratic
C)  Civil
D)  CommonE) B) and C)
F) A) and D)

Question 3

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.E) None of the above
F) A) and B)

Question 4

Chase files a complaint with his local Better Business Bureau about an advertisement he feels is misleading and deceptive.The BBB would:

Accepted Answer

A)  keep a copy of the complaint in the company's file for future use if someone asked about that particular company.
B)  refer the complaint to the National Advertising Division.
C)  refer the complaint to the National Advertising Review Board.
D)  refer the complaint to the Federal Trade Commission.E) A) and B)
F) All of the above

Question 5

The Wheeler-Lea Amendment (1938)of the Federal Trade Commission Act prohibits false and misleading advertisements.

Accepted Answer

A) True 
 B)False

Question 6

The NAD of the Council of Better Business Bureaus becomes involved in each of the following except:

Accepted Answer

A)  cases of mail fraud.
B)  collecting information about misleading advertising.
C)  negotiating modification of ads deemed to be misleading.
D)  dismissing unsubstantiated complaints about an advertisement.E) B) and D)
F) A) and B)

Question 7

If a firm suggests or hints that it is associated with a major sporting event when it is not,it is:

Accepted Answer

A)  stealth.
B)  direct ambush.
C)  incidental ambush.
D)  indirect ambush.E) A) and D)
F) A) and C)

Question 8

When the FTC Act was passed in 1914,the Federal Trade Commission's responsibility was to enforce antitrust laws and to protect businesses from one another.

Accepted Answer

A) True 
 B)False

Question 9

Which agency has the authority to order corrective advertising?

Accepted Answer

A)  Federal Communications Commission
B)  Federal Trade Commission
C)  Food and Drug Administration
D)  Bureau of Alcohol,Tobacco,and FirearmsE) B) and D)
F) B) and C)

Question 10

An appeal of a decision by the NAD goes to the:

Accepted Answer

A)  United States Court of Appeals.
B)  Federal Trade Commission.
C)  National Advertising Review Board.
D)  Federal Communications Commission.E) All of the above
F) A) and D)

Question 11

To substantiate an advertisement,the Federal Trade Commission and courts tend to use each of the following principles except:

Accepted Answer

A)  the federal government assumes consumers read ads "broadly" and do not notice details hidden in fine print.
B)  tests have to be with the actual product or one that is considered similar.
C)  evidence should come from individuals or companies that would be considered experts by others in the field.
D)  the courts and FTC will consider the totality of evidence concerning a claim,not just one particular study that may support a claim.E) C) and D)
F) All of the above

Question 12

To influence purchase decisions,purchasing agents and other members of a buying organization are often the recipients of gifts,meals,entertainment,and free trips.

Accepted Answer

A) True 
 B)False

Question 13

If a company sets up a booth near a major sporting event,such as the Olympics,but is not an official sponsor of the event,it is called saturation ambush marketing.

Accepted Answer

A) True 
 B)False

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.E) B) and C)
F) None of the above

Question 15

Cases before the full commission of the FTC can be appealed to the U.S.Court of Appeals and even to the U.S.Supreme Court.

Accepted Answer

A) True 
 B)False

Question 16

In terms of substantiation of advertising claims,the FTC and the courts consider the totality of evidence,not the results of just one study if other studies find different results.

Accepted Answer

A) True 
 B)False

Question 17

Reebok and Skechers were both forced to pay fines for misleading advertising about shoe products.

Accepted Answer

A) True 
 B)False

Question 18

The federal agency that presides over marketing communications is the Federal Communications Commission.

Accepted Answer

A) True 
 B)False

Question 19

If Coca-Cola runs an advertisement that suggests the company sponsors the Super Bowl when it does not,which form of ambush marketing is being used?

Accepted Answer

A)  Allusion marketing
B)  Incidental marketing
C)  Distractive marketing
D)  Saturation marketingE) B) and C)
F) None of the above

Question 20

The FTC can use the court system to stop unfair and deceptive advertising and communication practices but must go through the normal steps of starting with a consent agreement.

Accepted Answer

A) True 
 B)False

Exam 14: Regulations and Ethical Concerns

If a company sets up a booth near a major sporting event,such as the Olympics,but is not an official sponsor of the event,it is called saturation ambush marketing.

Correct AnswerverifiedShow Answer

The Wheeler-Lea Amendment (1938)of the Federal Trade Commission Act prohibits false and misleading advertisements.

Correct AnswerverifiedShow Answer

Indirect ambush marketing occurs when:

Correct AnswerverifiedShow Answer

To influence purchase decisions,purchasing agents and other members of a buying organization are often the recipients of gifts,meals,entertainment,and free trips.

Correct AnswerverifiedShow Answer

An administrative complaint is:

Correct AnswerverifiedShow Answer

Which agency has the authority to order corrective advertising?

Correct AnswerverifiedShow Answer

Reebok and Skechers were both forced to pay fines for misleading advertising about shoe products.

Correct AnswerverifiedShow Answer

Name three types of legal systems in international setting.

Correct AnswerverifiedCommon law...View AnswerShow Answer

An appeal of a decision by the NAD goes to the:

Correct AnswerverifiedShow Answer

A form of law based on a broad set of legal principles and decisions made based on legal codes that have been written over time is which type of law?

Correct AnswerverifiedShow Answer

If a firm suggests or hints that it is associated with a major sporting event when it is not,it is:

Correct AnswerverifiedShow Answer

To substantiate an advertisement,the Federal Trade Commission and courts tend to use each of the following principles except:

Correct AnswerverifiedShow Answer

The federal agency that presides over marketing communications is the Federal Communications Commission.

Correct AnswerverifiedShow Answer

Chase files a complaint with his local Better Business Bureau about an advertisement he feels is misleading and deceptive.The BBB would:

Correct AnswerverifiedShow Answer

If Coca-Cola runs an advertisement that suggests the company sponsors the Super Bowl when it does not,which form of ambush marketing is being used?

Correct AnswerverifiedShow Answer

In terms of substantiation of advertising claims,the FTC and the courts consider the totality of evidence,not the results of just one study if other studies find different results.

Correct AnswerverifiedShow Answer

The NAD of the Council of Better Business Bureaus becomes involved in each of the following except:

Correct AnswerverifiedShow Answer

Cases before the full commission of the FTC can be appealed to the U.S.Court of Appeals and even to the U.S.Supreme Court.

Correct AnswerverifiedShow Answer

The FTC can use the court system to stop unfair and deceptive advertising and communication practices but must go through the normal steps of starting with a consent agreement.

Correct AnswerverifiedShow Answer

When the FTC Act was passed in 1914,the Federal Trade Commission's responsibility was to enforce antitrust laws and to protect businesses from one another.

Correct AnswerverifiedShow Answer

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Common law...
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