Deck 13: Advertising

Question 1

Which word or phrase applies to the agreement between the FTC and an advertiser in which specific terms of future conduct are stipulated?

A)voluntary compliance
B)cease and desist order
C)consent order
D)substantiation

Answer 1

C

Question 2

The Supreme Court ruled that the First Amendment imposed no limits to government regulation of purely commercial speech [The Evolution of the Commercial Speech Doctrine] Factual

A)in the 1940s
B)in the 1960s
C)in the 1980s
D)after 2005

Answer 2

A

Question 3

The FTC definition of false and misleading advertising includes all of the following except

A)taken from the perspective of a reasonable consumer acting reasonably
B)a material claim likely to affect consumer behavior
C)a specific intent to deceive the consumer
D)a representation,practice,or omission likely to mislead the consumer

Answer 3

C

Question 4

The important Bigelow v.Virginia case involved

A)an abortion clinic ad
B)a prescription drug price ad
C)gambling casino ads
D)ads for electrical appliances

Question 5

The FTC defines puffery as

A)grossly misleading claims about products or services
B)exaggerated product claims that no reason?able person would take seriously
C)false material claims likely to affect consumer purchase decisions
D)mentioning "hard" liquor on television

Question 6

FTC opinion letters are

A)its most formal preventive mechanism
B)informal and advisory
C)designed to provide guidance to an entire industry or market sector
D)generally a last resort prior to the levying of heavy fines

Question 7

Which word or phrase applies to the requirement that advertisers must verify or prove their claims?

A)voluntary compliance
B)cease and desist order
C)consent order
D)substantiation

Question 8

Which federal agency is the primary regulator of advertising?

A)Federal Trade Commission
B)Federal Communications Commission
C)Federal Bureau of Tobacco,Alcohol,and Firearms
D)Federal Securities and Exchange Commission

Question 9

The FTC's two primary approaches for addressing problematic advertising are

A)preventive and corrective
B)corrective and punitive
C)punitive and comprehensive
D)preventive and comprehensive

Question 10

The Supreme Court first ruled that the First Amendment provided some protection from government regulation of commercial speech in a case involving [The Evolution of the Commercial Speech Doctrine] Factual

A)a letter to the editor in which Nike defended its overseas facilities.
B)interstate advertising for casinos.
C)a tobacco ad using cartoon characters.
D)an advertisement for the civil rights movement.

Question 11

Courts define commercial speech as [Introduction] Conceptual

A)paid messages of any kind
B)paid messages that do no more than propose commercial transactions
C)both paid and unpaid messages designed to promote commercial transactions and advance corporate interests
D)none of the above

Question 12

In the development of commercial speech law,which statement below best describes how SUNY v.Fox impacted Central Hudson Gas & Electric Corp.v.Public Service Commission?

A)There was no impact; Central Hudson remained unchanged.
B)Fox overturned Central Hudson.
C)Fox modified Central Hudson by creating an entirely new test to determine whether an advertising regulation is constitutional,giving future courts a choice in deciding which test to use.
D)Fox modified only one element of the Central Hudson test,creating a slightly new and different test.

Question 13

In Virginia State Board of Pharmacy v.Virginia Citizens Consumer Council,about advertising prescription drug prices,the U.S.Supreme Court ruled that

A)commercial speech has no First Amendment protection
B)while some regulation of advertising is permissible,it was not in this case because of the valuable information contained within the ads in question
C)commercial speech has absolute First Amendment protection
D)advertisements must be allowed to make exaggerated claims

Question 14

The U.S.Supreme Court has reviewed cases involving regulation of gambling advertisements because

A)the Constitution clearly protects advertising from such regulation
B)there is no substantial government interest in regulating advertising
C)neighboring states differ in their regulation of the activity and its promotion
D)the Court has authority over all regulation of "vice" products and activities

Question 15

Which statement below is not true regarding the commercial speech doctrine?

A)The doctrine attempts to ensure that any government regulation of advertising serves a government interest.
B)The doctrine attempts to ensure that the government interest is directly advanced by the regulation.
C)The doctrine attempts to ensure that the government interest is advanced through the least restrictive means.
D)The doctrine asks whether the advertisement in question is false,misleading,or promotes anything illegal.

Question 16

The First Amendment protection for commercial speech is [Introduction] Conceptual

A)well defined and firmly established in the Supreme Court's decision in Valentine v.Chrestensen.
B)limited by the Fourteenth Amendment
C)unclear
D)shrinking in response to the Supreme Court's growing concern about the undue influence of corporations on public opinions and actions

Question 17

Which of the following is not true about the CAN-SPAM Act?

A)It prohibits the use of false header information in commercial e-mail.
B)It requires unsolicited e-mail messages to include opt-out instructions.
C)ISPs,state attorneys general,and federal agencies can pursue spammers in federal courts with criminal and civil penalties.
D)It requires all Internet advertisers to register with the FCC.

Question 18

Which of the following is not an FTC measure that may be used to control false advertising?

A)consent order
B)ad substantiation
C)corrective advertising
D)reciprocal order

Question 19

In recent years,the FTC has

A)initiated action against food and clothing products that make unsubstantiated health and weight-loss claims
B)avoided the use of its corrective measures
C)reduced the term of its members
D)made puffery its primary focus

Question 20

The Lanham Act targets

A)improper use of broadcast frequencies
B)unfair competition by an advertiser
C)the distribution of obscene material via the U.S.mail
D)fair use violations

Question 21

The FCC is the primary federal regulator of advertising.

Question 22

The Supreme Court's ruling in New York Times v.Sullivan clearly establishes that [The Evolution of the Commercial Speech Doctrine] Conceptual

A)any payment for the publication of material limits the First Amendment protection for the content.
B)payment for publication does not single-handedly limit the First Amendment protection for content.
C)the First Amendment absolutely protects all content distributed by "the press" from government regulation.
D)content qualifies as commercial speech an average person would recognize the content as an ad.

Question 23

The advertising of "vice" products,such as tobacco and alcohol,often has been the source of cases testing the commercial speech doctrine.

Question 24

In spite of protests by First Amendment proponents,all tobacco advertising is now illegal.

Question 25

Because government controls or bans certain products and services,advertising for these products and services [Chapter generally] Conceptual

A)is subject to the same degree of government control.
B)may be subject to some government regulation.
C)may not be regulated because the public has a heightened need for information in these areas.
D)is illegal.

Question 26

The fact that advertising can cross state lines,where laws may differ from those in the originating state,is not a concern for the courts.

Question 27

Since the commercial speech doctrine was established in the Central Hudson case,it has remained unchanged.

Question 28

Regulations of alcohol product advertising must treat print,outdoor,broadcast,and online advertising the same.

Question 29

When false or misleading advertising may lead to immediate harm,the Federal Trade Commission has [Factual] Corrective Measures

A)no special authority.
B)to seek approval from the Senate Commerce Committee before taking punitive action.
C)authority to seek a court restraining order.
D)to act within 72 hours.

Question 30

At the federal level,consumers are protected from false and misleading advertising by [Factual] Chapter Content Generally

A)the First Amendment,the Lanham Act and the rules and regulations of multiple federal agencies.
B)the Lanham Act and the Food and Drug Administration.
C)only the First Amendment.
D)the Lanham Act and the Federal Trade Commission.

Question 31

The Federal Communications Commission's rules on broadcast advertising apply

A)equally to public and commercial broadcasters apply.
B)stricter limits on commercial broadcasters.
C)stricter limits on public broadcasters.
D)only to commercial broadcasters.

Question 32

The Supreme Court has not heard cases involving offensive political advertising,and the U.S.Circuit Courts of Appeal [Factual] Offensive Advertising

A)disagree on the test to use to determine the outcome of these cases.
B)agree on the test to use to determine the outcome of these cases.
C)agree that government may ban false,misleading,or profoundly offensive political advertisements.
D)also have not heard these cases.

Question 33

In deciding the false advertising suit brought by POM Wonderful against Coca-Cola,the Supreme Court held that

A)the Food and Drug Administration on product content labeling barred a Lanham Act unfair competition lawsuit.
B)the Lanham Act has no bearing on food and beverage labeling.
C)the Food and Drug Administration on product content labeling barred a deceptive labeling lawsuit.
D)false and misleading labeling could be grounds for a lawsuit even when the labeling met the Food and Drug Administration's minimum content requirements.

Question 34

Congress first established the Federal Trade Commission Congress in the 1960s to address the controversy surrounding tobacco advertising.

Question 35

The FTC includes a Bureau of Consumer Protection.

Question 36

Many of the court decisions in the area of commercial speech involve advertising and labeling of [Chapter generally] Conceptual

A)alcohol and tobacco
B)gambling
C)pharmacies and prescription drugs
D)all of the above

Question 37

The Supreme Court's commercial speech decisions in 2014 make clear that the application of the commercial speech doctrine to corporate speech is

A)stable
B)changing
C)clear
D)both A and C

Question 38

In Sorrell v IMS Health Inc.,the Supreme Court established that government regulation of advertising [Prescription Medicines] Conceptual

A)may target messages contrary to its own views.
B)may not engage in content-based,viewpoint discrimination.
C)
C)may not target messages it disfavored.
D)both B and

Question 39

The Lanham Act originally targeted unfair competition in business.

Question 40

Which of the following is not part of the Central Hudson test? [The Evolution of the Commercial Speech Doctrine] Factual

A)The size and impact of the commercial speech.
B)Whether the ad is false,misleading,or for an illegal product.
C)The government's interest in the regulation.
D)Whether the regulation directly advances the government interest.

Question 41

The government has nearly absolute power to control the labeling on consumer products to avoid harms such as potency or price wars.

Question 42

A single federal agency and a uniform set of rules applies to regulation of all false,deceptive,or misleading commercial speech.
[Chapter Generally] Conceptual

Question 43

In Sorrell v.IMS Health Inc.,the Supreme Court reviewed a state law prohibiting the sale of doctors' prescription records (tracking consumer trends)to marketing and data-mining firms.The Court agreed that the regulation targeted economic activity and infringed on commercial speech.The majority applied strict scrutiny to strike down the regulation as an unconstitutional content-based and viewpoint based regulation.Discuss the reasoning of the dissent to explain why this ruling is significant and how it changes the commercial speech doctrine.

Question 44

Recent Supreme Court decisions appear to be expanding the application of the Lanham Act.
[Legislative and Administrative Advertising Regulation] Conceptual

Question 45

The Supreme Court has ruled that a state's interest in regulating gambling establishes a parallel state interest in regulating the advertising of gambling.
[Gambling Advertising] Conceptual

Question 46

Under what condition does the commercial speech doctrine permit government regulation of truthful,nonmisleading advertising for legal goods and services?

Question 47

The Federal Communication Commission regulates offensive broadcast advertising.
[Offensive Advertising] Factual

Question 48

State the two categories of measures available to the Federal Trade Commission to oversee advertising and provide one example of each.

Question 49

One element of the commercial speech doctrine examines whether the product in question should be advertised at all.

Question 50

Courts generally have said government has the same authority to mandate graphic consumer warnings as it has to regulate tobacco advertising.
[Tobacco Advertising] Conceptual

Question 51

In Sorrell v.IMS Health Inc.,the Supreme Court held that the First Amendment permitted government to limit the flow of commercial information to a specific audience.
[Factual] Prescription Medicines

Question 52

Decades ago,the Supreme Court began to recognize that the public's First Amendment interest in consumer information may be as high as the interest in political information.

Question 53

The FTC distinguishes between false and misleading advertising and puffery.Define the two categories.

Question 54

The First Amendment protects only the rights of the speaker,not the right of the public to receive information.

Question 55

Speech loses its First Amendment protection when money is spent to create or distribute it.

Question 56

In deciding to allow POM Wonderful to pursue a false advertising lawsuit against Coca-Cola,the Supreme Court discussed the Lanham Act,Food and Drug Administration Rules,and Federal Trade Commission rules.What does this indicate about the current state of federal oversight of false advertising.

Question 57

Members of Congress have received numerous complaints about an off-road vehicle called "Liferisk." It has three balloon-tire wheels and a 200 horsepower engine.It is designed to drive over any surface at speeds up to 80 miles per hour.Several people have been killed when their Liferisks overturned,and a number of others have been injured.Congress debated forbidding the manufacture of Liferisk,but it is made by an American company and is exported quite successfully overseas,thereby helping America's balance of payments.Instead,Congress made it illegal to advertise Liferisk in the United States.(No one argues Liferisk's ads are misleading or deceptive.)Liferisk's manufacturer asks a federal court to declare the law a violation of the manufacturer's First Amendment rights.How should the court rule? Why?