Deck 18: Social Impact,responsibility, and Ethics: Is It Right

Question 1

Verbal or written words in an advertisement that indicate exceptions to the advertising claim made are known as ________.

A)ethics
B)puffs
C)endorsements
D)testimonials
E)disclaimers

Answer 1

E

Question 2

Which of the following is NOT an element of the Master Settlement Agreement of 1998?

A)a ban on all in-store advertising located within 1,000 feet of a school
B)a ban on direct targeting of youth
C)restriction of the use of cartoon characters
D)$150 million provided to fund antismoking ads targeting children
E)restriction of product placements in entertainment media

Answer 2

A

Question 3

Which of the following provides regulations protecting consumers from misleading claims?

A)Master Settlement Agreement
B)American Association of Advertising Agencies
C)Institute for Advertising Ethics
D)Federal Trade Commission
E)Public Relations Society of America

Answer 3

D

Question 4

The question of whether advertising creates social values or merely reflects them is known as the ________.

A)social-versus-economic debate
B)competitive-versus-market power debate
C)personal-versus-corporate debate
D)personal-versus-social debate
E)shape-versus-mirror debate

Question 5

Which term describes what happens when Western culture is imposed on others?

A)materialism
B)stereotyping
C)cultural imperialism
D)demand creation
E)marketing elitism

Question 6

The main concern the FTC has when an advertiser makes substitutes for products during a demonstration (such as using a mixture of glue and water instead of ice cream)is whether the ________.

A)substitution is necessary
B)demonstration uses puffery
C)advertiser indicates that substitutes are used in the demonstration
D)consumer knows substitutes are used in the demonstration
E)demonstration falsely upgrades the consumers' perception of the advertised brand

Question 7

Which of the following does NOT describe a claim that uses puffery?

A)a claim that is obviously exaggerated
B)a claim supported by a set of facts
C)a claim that is vague
D)a claim supported by subjective opinions
E)a claim that can be neither proven nor disproven

Question 8

Which of the following prohibits consumers from taking cash from manufacturers,suppliers,or their representatives for making recommendations,reviews,or endorsements,unless full disclosure is provided?

A)Word of Mouth Marketing Association's ethics code
B)Council of Better Business Bureaus
C)American Association of Advertising Agencies' Creative Code
D)TARES Test of Ethical Advertising
E)Federal Trade Commission

Question 9

According to U.S.law,which of the following is NOT an element a company/plaintiff is required to prove to win a false advertising lawsuit about an ad containing a comparative claim?

A)False statements have been made about either product.
B)The ads actually deceived or had the tendency to deceive a substantial segment of the audience.
C)The offending advertiser intended to damage the complaining company's business.
D)The deception was "material" and likely to influence purchasing decisions.
E)Falsely advertised goods are sold in interstate commerce.

Question 10

Some Asian and Middle Eastern countries are critical of what they see as America's materialism and disrespectful behavior toward elders and are worried that advertising will encourage their young people to adopt these viewpoints.It is most accurate to say that these countries are concerned about ________.

A)marketing ethics
B)deceptive advertising
C)stereotyping
D)social responsibility
E)marketing imperialism

Question 11

Which of the following is TRUE regarding customs?

A)Customs can be stronger than laws.
B)Customs are easily identified and explained.
C)Customs are basically the same around the world.
D)Customs have little impact on the effectiveness of advertising.
E)Only natives of a culture can ever understand local customs.

Question 12

Which term refers to advertising that praises the item to be sold with subjective opinions,superlatives,or exaggerations,and states no specific facts?

A)puffery
B)manipulative advertising
C)deceptive advertising
D)comparative advertising
E)endorsement

Question 13

Which of the following best explains why the amount of prescription drug advertising has increased since 1997?

A)The American Medical Association approved the use of advertising to promote prescription drugs.
B)The federal government loosened its controls on the production of prescription drugs.
C)Pharmaceutical companies realized that a pull strategy would be more effective than a push strategy.
D)The federal government loosened its controls on pharmaceutical advertising.
E)Patents held by many pharmaceutical companies expired,resulting in price competition and heavy advertising.

Question 14

Under U.S.law,businesses can seek damages from a competitor who misrepresents the nature,characteristics,qualities,or geographic origin of the company's product in ________.

A)puffery
B)mission advertising
C)demand creation
D)comparative advertising
E)claim advertising

Question 15

Cigarette advertising on ________ has been banned since 1971.

A)radio only
B)television only
C)print media only
D)radio and television only
E)radio,television,and print media

Question 16

________ results when an external message drives people to feel a need or want to buy a product.

A)Demand creation
B)Direct marketing
C)Social marketing
D)Cause marketing
E)Mission marketing

Question 17

A ________ is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group.

A)norm
B)reference group
C)symbol
D)perception
E)stereotype

Question 18

A(n)________ is any advertising message that consumers believe reflects the opinions,beliefs,or experiences of an individual,group,or institution.

A)endorsement
B)comparative ad
C)puffed ad
D)one-sided message
E)two-sided message

Question 19

A company that pays bloggers to pose as customers and post customer reviews online is using ________.

A)green marketing
B)cause marketing
C)shockvertising
D)flogging
E)networking

Question 20

Which of the following states a message that is UNTRUE?

A)puffery
B)comparative advertising
C)image advertising
D)product demonstration
E)false advertising

Question 21

Which of the following organizations monitors direct-mail advertising materials such as credit card offers?

A)U)S.Patent and Trademark Office
B)States' Attorney Generals
C)U)S.Postal Service
D)Federal Communications Commission
E)Food and Drug Administration

Question 22

Bayer Aspirin claims that it relieves headache pain three times faster than does Tylenol.What type of advertising is this?

A)comparative
B)testimonial
C)endorsement
D)indirect
E)substantiated

Question 23

Unfair methods of competition in commerce were declared unlawful by the ________.

A)1906 Pure Food and Drug Act
B)1914 Federal Trade Commission Act
C)1938 Wheeler-Lea Amendment
D)1946 Lanham Act
E)1980 FTC Improvement Act

Question 24

As a part of new health care reform efforts,the United States government now requires health insurance companies to ________.

A)discontinue broadcast advertising
B)discontinue direct advertising
C)provide coverage for brand name medications only
D)provide coverage for generic medications only
E)spend at least 80% of the premiums they receive on medical care,not other costs such as advertising

Question 25

Adbusters.org is an example of a(n)________.

A)professional advertising association
B)anticonsumerist organization
C)regulatory government agency
D)public relations agency
E)advertising institute

Question 26

Which of the following refers to the ethically questionable practice of companies paying or providing incentives for bloggers to post positive comments about products?

A)blogola
B)puffery
C)comparative advertising
D)commercial speech
E)substantiated claims

Question 27

A class-action lawsuit was brought against McDonald's charging that its food has contributed to the nationwide obesity epidemic.The suit was eventually dismissed,but many critics continue to point out the health dangers of typical "fast food" menu items.These critics are concerned that the fast food industry has used ________.

A)high-pressure selling
B)deceptive promotions
C)deceptive pricing
D)deceptive packaging
E)harmful products

Question 28

Personal judgment and moral reasoning rest on ________.

A)explicit laws governing practice
B)membership in a professional association
C)an understanding of the law
D)a sense of right and wrong
E)a code of standards

Question 29

Charley's Fish Fry restaurant claims it has the "best seafood in town." What type of claim does the Federal Trade Commission consider this to be?

A)deceptive
B)comparative
C)puffery
D)endorsement
E)indirect

Question 30

Some claim advertising has actively created a society that is overly concerned with personal hygiene.Advertising has bombarded consumers with so many ads for products that remove our body odors,make our teeth white,or make our hair shine that we have become obsessed with outer appearances.Which side of the social debate on advertising do supporters of this statement most likely take?

A)advertising mirrors social values
B)advertising mimics social values
C)advertising shapes social values
D)advertising is deceptive
E)advertising is offensive

Question 31

Although some doctors appreciate that pharmaceutical advertising has caused consumers to become more active in managing their own health and more informed about their drug options,other doctors feel pressured to write inappropriate prescriptions because their patients are influenced by the drug ad claims.What is this called,when an external message,like an advertisement,causes people to feel a need to buy and use a product?

A)demand creation
B)shockvertising
C)indirect advertising
D)endorsement advertising
E)puffery

Question 32

Government oversight responsibility with respect to advertising includes ________.

A)professional discipline
B)self-regulation
C)laws and regulations
D)right to refuse
E)community group regulation

Question 33

________ are frameworks for right actions and are primarily the domain of religion and philosophy.

A)Missions
B)Ethics
C)Morals
D)Customs
E)Traditions

Question 34

In a focus group of women in their 50s,participants objected to health care ads showing older women with arthritis in sedentary positions.They would prefer to see the women working out in a gym.This is an example of ________.

A)marketing imperialism
B)cultural differences
C)deceptive advertising
D)ethnic stereotyping
E)age-related stereotyping

Question 35

John works for an advertising agency whose client wants to reach Hispanic consumers living in Florida and Texas.He decides that one ad execution is sufficient because he believes that all Hispanics are the same.John is using a(n)________ to make his decision.

A)heuristic
B)shortcut
C)unethical basis
D)stereotype
E)substantiation

Question 36

The FTC's policy on ________relies on the likelihood that the advertisement is misleading,the reasonability of the consumer's interpretation,and the probability of material injury.

A)puffery
B)comparative advertising
C)competitive advertising
D)deceptive advertising
E)corrective advertising

Question 37

________ are the "shoulds" and "oughts" of behavior.

A)Missions
B)Ethics
C)Regulations
D)Customs
E)Traditions

Question 38

In New York City,a series of advertisements on billboards and subway cars conveys the image of soda into bottles of fat.Many of these images also include people trying to drink the fatty contents of the bottle.The advertisements,sponsored by the NYC Health Department,ask "Are you pouring on the pounds?" Looking at the images is unsettling for many viewers.This is an example of ________.

A)shockvertising
B)false advertising
C)flogging
D)indirect advertising
E)corrective advertising

Question 39

Many professions write a code of ________ to help guide practitioners toward ethical behavior.

A)morals
B)ethics
C)laws
D)regulations
E)beliefs

Question 40

Which of the following is designed to help marketers and advertising specialists create transparent advertising in a fair,honest,and forthright manner?

A)FTC Improvement Act
B)Principles and Practices for Advertising Ethics
C)The Public Relations Society of America
D)National Advertising Review Board Rules
E)Better Business Bureau of Practices

Question 41

The Federal Communications Commission (FCC)can take action against ________.

A)the media
B)advertisers
C)advertising agencies
D)manufacturers
E)suppliers

Question 42

Which of the following is TRUE regarding a trademark?

A)It gives an organization the exclusive right to use or reproduce original work,such as an advertisement or package design,for a period of time.
B)Controls for protection are provided by the Library of Congress.
C)The Department of Labor protects unique trademarks from infringement by competitors.
D)It identifies the seller's brand and differentiates it from the brands of other sellers.
E)It must be registered with the FTC,which gives the organization exclusive use of the mark,as long as the trademark is maintained as an identification for a specific product.

Question 43

Which of the following CANNOT be copyrighted?

A)advertisement
B)idea
C)package design
D)illustration
E)photograph

Question 44

Which of the following does NOT have governmental authority concerning some form of advertising regulation?

A)Bureau of Alcohol,Tobacco,and Firearms
B)Federal Communications Commission
C)U)S.Postal Service
D)National Advertising Division
E)Food and Drug Administration

Question 45

Which of the following gave the FTC the authority to provide consumers methods for seeking redress or restitution for deceptive marketing practices?

A)Federal Trade Commission Act
B)Telemarketing and Consumer Fraud Act and Abuse Protection Act
C)Magnuson-Moss Warranty/FTC Improvement Act
D)Wheeler-Lea Amendment
E)1980 Supreme Court ruling on Central Hudson Gas and Electric v.Public Service Commission of New York

Question 46

Which federal agency oversees package labeling,ingredient listing,and advertising for food and pharmaceuticals?

A)Federal Trade Commission
B)Food and Drug Administration
C)Federal Communications Commission
D)Bureau of Alcohol,Tobacco,and Firearms
E)US Patent and Trademark Office

Question 47

Which Amendment to the U.S.Constitution states that Congress shall make no law "abridging the freedom of speech or of the press"?

A)First
B)Second
C)Third
D)Fourth
E)Fifth

Question 48

Which of the following prohibits unfair and deceptive acts and practices regardless of whether competition is injured?

A)Lanham Act
B)Wheeler-Lea Amendment
C)National Advertising Review Council
D)Pure Food and Drug Act
E)Magnuson-Moss Warranty

Question 49

Which of the following protects unique trademarks from infringement by competitors?

A)Pure Food and Drug Act
B)Wheeler-Lea Amendment
C)Lanham Act
D)Federal Trade Commission Act
E)FTC Improvement Act

Question 50

________ speech promotes buying and/or selling products.

A)Political
B)Free
C)Unregulated
D)Commercial
E)Regulated

Question 51

The most basic federal law that governs advertising is the ________ Amendment to the U.S.Constitution.

A)First
B)Second
C)Third
D)Fourth
E)Fifth

Question 52

In which case did the Supreme Court establish a test that determines to what extent the government can restrict advertising?

A)Valentine v.Chrestensen (1942)
B)Virginia State Board of Pharmacy v.Virginia Citizens Consumer Council (1976)
C)Central Hudson Gas & Electric Corporation v.Public Service Commission of New York (1980)
D)Cincinnati v.Discovery Network (1993)
E)44 Liquormart,Inc.v.Rhode Island (1995)

Question 53

Which of the following describes a URL?

A)patent
B)trademark
C)internet domain name
D)logo
E)copyright

Question 54

Which federal agency was formed to protect the public interest in radio and television broadcast communications?

A)Federal Trade Commission
B)Food and Drug Administration
C)Federal Communications Commission
D)Bureau of Alcohol,Tobacco,and Firearms
E)National Advertising Division

Question 55

Which of the following gives the House of Representatives and the Senate joint veto power over FTC regulations?

A)1980 FTC Improvement Act
B)1938 Wheeler-Lea Amendment
C)1946 Lanham Act
D)1906 Pure Food and Drug Act
E)1975 Magnuson-Moss Warranty/FTC Improvement Act

Question 56

The Supreme Court protects commercial speech that is ________.

A)untruthful
B)harmful to the public
C)deceptive
D)political
E)misleading

Question 57

A(n)________ gives an organization the exclusive right to use or reproduce original work,such as an advertisement or package design,for a specified period.

A)trademark
B)URL
C)copyright
D)patent
E)brand name

Question 58

Which of the following federal agencies has control over lotteries and mail fraud?

A)U)S.Postal Service
B)FCC
C)FDA
D)U)S.Patent and Trademark Office
E)Library of Congress

Question 59

What is the primary agency governing marketing communications?

A)FCC
B)FTC
C)FDA
D)US Postal Service
E)US Patent and Trademark Office

Question 60

A brand,a corporate or store name,or a distinctive symbol that identifies the seller's brand and thus differentiates it from the products of other sellers is called a ________.

A)trademark
B)copyright
C)logo
D)patent
E)brand name

Question 61

Which arm of the Advertising Self-Regulatory Council is made up of people from the field of advertising who evaluate complaints submitted by consumers,consumer groups,industrial organizations,and advertising firms?

A)National Advertising Division (NAD)
B)National Advertising Review Board (NARB)
C)American Association of Advertising Agencies (AAAA)
D)Federal Trade Commission (FTC)
E)American Advertising Federation (AAF)

Question 62

If the National Advertising Division (NAD)and an allegedly deceptive advertiser cannot reach a satisfactory resolution,the case is referred to the ________.

A)National Advertising Review Board (NARB)
B)American Association of Advertising Agencies (AAAA)
C)Federal Trade Commission (FTC)
D)American Advertising Federation (AAF)
E)Federal Communications Commission (FCC)

Question 63

If the National Advertising Review Board (NARB)and an allegedly deceptive advertiser cannot reach a satisfactory resolution,the case is most likely referred to the ________.

A)National Advertising Division (NAD)
B)American Association of Advertising Agencies (AAAA)
C)Advertising Review Council (ARC)
D)American Advertising Federation (AAF)
E)Federal Trade Commission (FTC)

Question 64

What agreement was reached in 1996 between broadcasters,children's advocates,and the federal government?

A)limiting advertising to 10 minutes per hour in children's weekend television programming
B)limiting advertising to 12.5 minutes per hour in children's weekday television programming
C)limiting advertising to 10 minutes per hour in all children's television programming
D)requiring all TV stations to air three hours of children's educational shows a week
E)banning all advertising during children's television programming

Question 65

Which of the following is NOT an FTC course of action for deception and unfair advertising?

A)consent decrees
B)cease-and-desist orders
C)incarceration
D)corrective advertising
E)consumer redress

Question 66

Which of the following is NOT considered by the FTC when determining the reasonableness of a claim in an advertisement?

A)type and specificity of claim made
B)type of product
C)possible consequences of a false claim
D)degree of reliance on the claims by consumers
E)price of the product

Question 67

Which type of self-regulation occurs when an advertising agency develops,uses,and enforces norms within its own practices?

A)industry self-regulation
B)self-discipline
C)social ethics
D)corporate social responsibility
E)personal ethics

Question 68

General Foods and Colgate-Palmolive have their own codes of behavior and criteria to determine whether their ads are acceptable.Which type of self-regulation does this demonstrate?

A)industry self-regulation
B)self-discipline
C)self-regulation by public groups
D)personal ethics
E)social ethics

Question 69

Which of the following is the best example of the type of advertising self-regulation referred to as self-discipline?

A)AT&T adopting a code of marketing ethics
B)an individual making choices based on her moral guidelines
C)the Distilled Spirits Council's Code of Responsible Practices designed for producers and marketers of distilled spirits
D)a company making special efforts to hire a multicultural staff
E)Duracell consenting to add a disclaimer to one of its ads

Question 70

Public Citizen and the Cultural Environment Movement are both examples of ________.

A)consumer activist groups
B)industry groups
C)government agencies
D)federal regulators
E)professional oversight groups

Question 71

The two operating arms of the Advertising Self-Regulatory Council are the ________.

A)NAD and the NARB
B)NAD and the AAAA
C)AAF and the AAAA
D)FTC and the FCC
E)FTC and the NAD

Question 72

Advertising intended to mislead consumers by making claims that are false or by failure to make full disclosure of important facts,or both,is called ________.

A)puff advertising
B)indirect advertising
C)deceptive advertising
D)unsubstantiated advertising
E)injurious advertising

Question 73

Which of the following is the landmark corrective advertising case?

A)Valentine v.Chrestensen
B)Warner-Lambert v.FTC
C)44 Liquormart,Inc.v FTC
D)Nike v.FTC
E)Cincinnati v.Discovery Network

Question 74

When an industry develops,uses,and enforces norms,this is known as which type of self-regulation?

A)industry self-regulation
B)self-discipline
C)social ethics
D)professional ethics
E)personal ethics

Question 75

In 1971,what organization did several professional advertising associations,in conjunction with the Council of Better Business Bureaus,establish to negotiate voluntary withdrawal of national advertising that professionals consider deceptive?

A)Public Citizen
B)American Legacy Foundation
C)American Association of Advertising Agencies
D)Advertising Self-Regulatory Council
E)American Advertising Federation

Question 76

For an advertisement to be ruled deceptive,the deception must influence consumers' decision making about products and services,which is known as ________.

A)misdirection
B)puffery
C)material injury
D)substantiation
E)double jeopardy

Question 77

A ________ is the first step in the regulation process after the FTC determines that an ad is deceptive.

A)consent decree
B)cease-and-desist order
C)corrective advertising campaign
D)consumer redress order
E)deposition

Question 78

Which of the following was NOT required by the Children's Television Advertising Practice Act of 1990?

A)a 10.5-minute-per-hour ceiling for commercials in children's weekend television programming
B)three hours of children's educational shows aired by all TV stations each week
C)commercial breaks that are clearly distinguished from programming
D)prohibiting the use of children's program characters to promote products in commercials
E)a 12-minute-per-hour limit for commercials in children's weekday television programming

Question 79

Which statement regarding cease-and-desist orders issued by the FTC is FALSE?

A)A cease-and-desist order requires that the deceptive or unfair practice by a business be stopped.
B)An advertiser accused of deceptive advertising is entitled to legal representation in front of the presiding judge.
C)An advertiser can appeal the order to a full five-member commission.
D)A cease-and-desist order is the first step in the regulation process after the FTC determines that an ad is deceptive.
E)The process leading to the issuance of a cease-and-desist order is similar to a court trial.

Question 80

Which of the following requires that an advertisement be discontinued within 30 days?

A)a claim substantiation
B)a finding of material injury
C)a consent decree
D)an order for corrective advertising
E)a cease-and-desist order