Question 1

The federal agency that regulates and oversees the manufacturing, distribution, and labeling of food and drugs is the

Accepted Answer

The Food and Drug Administration (FDA) is the federal agency responsible for regulating and overseeing the manufacturing, distribution, and labeling of food and drugs in the United States.

Question 2

The federal agency that regulates the television, radio, and telephone industries is the

Accepted Answer

The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates interstate and international communications by radio, television, wire, satellite, and cable.

Question 3

The federal agency that oversees the manufacture, sale, and distribution of tobacco and alcohol is the

Accepted Answer

The Bureau of Alcohol, Tobacco, and Firearms (BATF), now known as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), is the federal agency responsible for regulating and overseeing the manufacture, sale, and distribution of alcohol and tobacco products.

Question 4

The federal agency that is responsible for ensuring free trade among businesses and which investigates false, deceptive, and misleading claims in advertising and other marketing material is the

Accepted Answer

The Federal Trade Commission (FTC) is the federal agency responsible for promoting free trade and protecting consumers by investigating false, deceptive, and misleading claims in advertising and marketing.

Question 5

The federal agency that sets safety standards for products used by consumers in and around their home is the

Accepted Answer

The Consumer Product Safety Commission (CPSC) is the federal agency that sets safety standards for products used by consumers in and around their home.

Question 6

The Fair Packaging and Labeling Act of 1966 requires

Accepted Answer

The Fair Packaging and Labeling Act of 1966 requires all food products have a label that states every ingredient in the order that corresponds to its relative content and who made the product.

Question 7

If the FTC issues a consent order and the company agrees, then

Accepted Answer

A consent order typically involves the company agreeing to stop the disputed practice without admitting guilt.

Question 8

All of the following statements about an administrative complaint are true except the fact that

Accepted Answer

In terms of an administrative complaint, the administrative complaint is similar to a court trial in that both sides may submit evidence and testimony to support their case. At the end of the case, the judge will make a ruling either for or against the complaint.

Question 9

If the full FTC Commission hears a case and believes a violation has occurred, it will issue a(n)

Accepted Answer

A cease-and-desist order is issued by the FTC when it determines that a violation has occurred, requiring the offending party to stop the illegal activity.

Question 10

The danger to a company in appealing an FTC case to the Court of Appeals is that

Accepted Answer

The Court of Appeals has the power to provide consumer redress, i.e. to levy civil penalties.

Question 11

All of the following statements about celebrity endorsers used in an advertisement are true except the fact that

Accepted Answer

Because of the high usage of celebrities in advertisements, the FTC has issued guidelines for their use. All of the statements are true, except celebrity statements do not have to based on independent sources. They can be his/her opinion, based on personal use of the product.

Question 12

If a firm makes a claim about its product, in which of the following situations would the firm have the best chance of substantiating the claim if the FTC investigated.

Accepted Answer

An independent study by a firm not connected with the product or the agency provides the most unbiased and credible evidence to substantiate the claim, which is likely to be favored by the FTC.

Question 13

All of the following are agencies of the Council of Better Business Bureaus except

Accepted Answer

The three subsidiaries of the CBBB are the National Advertising Division (NAD), the Children's Advertising Review Unit (CARU), and the National Advertising Review Board (NARB).

Question 14

When complaints about advertising are received by the National Advertising Division (NAD) or the Children's Advertising Review Unit (CARU) of the BBB, the respective agency will

Accepted Answer

When complaints about advertising are received by the National Advertising Division (NAD) or the Children's Advertising Review Unit (CARU) of the BBB, the NAD will collect information and evaluate data concerning the case to determine if the complaint is legitimate and if claims made in the ad are substantiated.

Question 15

The National Advertising Review Board (NARB) is composed of

Accepted Answer

The National Advertising Review Board (NARB) is composed of advertising professionals and prominent civic representatives.

Question 16

In the case of the advertising industry investigating a complaint about false or misleading advertising, the _____ is the agency that is most likely to issue a consent decree similar to what the FTC issues.

Accepted Answer

The answer of In the case of the advertising industry...

Question 17

In a recent survey, _____ percent of Americans indicated that it is important for corporations to support the needs of society.

Accepted Answer

In a recent survey, 83 percent of Americans indicated that it is important for corporations to support the needs of society and be involved in social causes.

Question 18

A long-term partnership between a nonprofit organization and a corporation that is integrated into the corporation's marketing plan is

Accepted Answer

Cause-related marketing is a long-term partnership between a nonprofit organization and a corporation that is integrated into the corporation's marketing plan.

Question 19

Writing a check to a local charity or a national charity is an example of

Accepted Answer

Philanthropy involves donating money, goods, services, or time to support a charitable cause, which is what writing a check to a charity represents.

Question 20

To ensure the success of a cause-related program, a firm should do all of the following except

Accepted Answer

The answer of To ensure the success of a cause-related...

Quiz 3: Marketing Ethics, Regulations, and Social Responsibility