Question 1

Alyssa was asked to edit her team's testimonial ad so it would include a disclosure that said "results not typical." Which agency scrutinizes the use of testimonial ads and asks for this type of disclosure in situations where the outcomes vary substantially?

Accepted Answer

The agency that scrutinizes the use of testimonial ads and asks for a disclosure that says "results not typical" is the FTC (Federal Trade Commission).

Question 2

The _____ is a government regulation that is increasingly being used by companies for filing lawsuits against competitors they believe are making FALSE claims.

Accepted Answer

The Lanham Act provides protection for trademarks by allowing companies to sue competitors who make false claims about their products or services. This provision is increasingly being used by companies to file lawsuits against competitors who make false claims. The other options listed are government regulations, but they do not specifically address false advertising claims.

Question 3

Many areas of sales promotions are regulated by the _____ through the Marketing Practices Division of the Bureau of Consumer Protection.

Accepted Answer

The Federal Trade Commission regulates many areas of sales promotions through its Marketing Practices Division of the Bureau of Consumer Protection.

Question 4

Which of the following programs is likely to be the most controversial of all the Federal Trade Commission's (FTC's) programs?

Accepted Answer

Corrective advertising is often controversial because it requires companies to publicly admit to misleading consumers, which can damage their reputation and lead to significant financial consequences.

Question 5

Under the _____, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking.

Accepted Answer

The Fairness Doctrine was a policy of the Federal Communications Commission (FCC) that required the holders of broadcast licenses to present controversial issues of public importance and to do so in a manner that was honest, equitable, and balanced. Under this doctrine, broadcasters were also required to air public service announcements, including those about the harmful effects of smoking, to ensure that differing views on important issues were presented.

Question 6

The _____ regulates and controls the advertising of alcoholic beverages.

Accepted Answer

The answer of The _____ regulates and controls the advertising...

Question 7

The _____ has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud.

Accepted Answer

The answer of The _____ has control over advertising involving...

Question 8

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the _____ that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry.

Accepted Answer

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is an agency within the Treasury Department that enforces laws, develops regulations, and is responsible for tax collection for the liquor industry.

Question 9

Garrett Inc., an oil retailer, claimed its Clear Index gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas.Vaughn Corp., an energy corporation, contended that its products were just as good as Garrett's.The _____ is likely to make it easier for Vaughn to sue Garrett for this perceived misrepresentation.

Accepted Answer

The Lanham Act (also known as the Trademark Act of 1946) prohibits false advertising and creates a private right of action for competitors who are harmed by such advertising. Therefore, if Vaughn believes that Garrett's claims are false and are harming its business, it can sue Garrett under the Lanham Act.

Question 10

The _____ is a federal agency that was founded in 1934 to regulate broadcast communication and that has jurisdiction over the radio, television, telephone, and telegraph industries.

Accepted Answer

The Federal Communications Commission (FCC) was established in 1934 to regulate communication industries such as radio, television, telephone, and telegraph. The agency enforces regulations related to competition, media ownership, content, and technical standards. The other options are not relevant to the regulation of broadcast communication. The Federal Trade Commission deals with consumer protection and competition issues in the marketplace. The Fairness Doctrine was a policy that required broadcasters to present both sides of controversial issues. The U.S. Postal Service is responsible for delivering mail and packages. The National Association of Broadcasters is a trade organization that represents broadcasters' interests.

Question 11

Under the Reagan administration, the controversial _____, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive.

Accepted Answer

The Fairness Doctrine required broadcasters to provide time for opposing viewpoints on important issues. It was repealed during the Reagan administration on the grounds that it was counterproductive.

Question 12

In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ board jurisdiction to regulate the advertising of cigarettes and smokeless tobacco.

Accepted Answer

The Food and Drug Administration (FDA) was given jurisdiction to regulate the advertising of cigarettes and smokeless tobacco by President Clinton's executive order in 1996.

Question 13

The _____ moved against a number of national advertisers as a result of inactivity by the Federal Trade Commission (FTC) during the Reagan administration.

Accepted Answer

The National Association of Attorneys General moved against national advertisers due to the inactivity of the Federal Trade Commission during the Reagan administration.

Question 14

Roberto's, a pizzeria, claimed in its print and television ads that its pizza was made from the best ingredients and tasted better than Pacifix Crust's pizzA.Pacifix Crust can launch a civil suit against Roberto's for FALSE and misleading advertising under the _____ Act.

Accepted Answer

The Lanham Act authorizes a civil suit against false advertising and prohibits false advertising that deceives the public. Therefore, Pacifix Crust can launch a civil suit against Roberto's for false and misleading advertising under the Lanham Act.

Question 15

Wagner Tire, a manufacturer of tires, is developing an advertising campaign that is set to claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires.The company must conduct careful studies to provide support for the claim because

Accepted Answer

Wagner's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. The Lanham Act provides a framework for businesses to seek legal remedies for false advertising or unfair competition practices. Competitors may sue under this act if they believe Wagner's claims are false or misleading. Therefore, it is essential for Wagner to conduct careful studies to provide support for its advertising claims.

Question 16

Which of the following is an important early development in state regulation that is used in 44 states as a basis for advertising regulation?

Accepted Answer

The model statutes, also known as the Uniform Deceptive Trade Practices Act, provided a framework for states to regulate advertising and protect consumers from false or misleading claims. This model law has been adopted by 44 states and serves as the basis for many state advertising regulations.

Question 17

Which of the following agencies is responsible for tax collection for the liquor industry?

Accepted Answer

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is responsible for collecting taxes on liquor, as well as tobacco and firearms.

Question 18

Under the Children's Television Act,

Accepted Answer

The Children's Television Act limits advertising during children's programming to 12 minutes per hour on weekdays. Advertisers who exceed these limits can be subject to fines from the FCC. However, the act does not prohibit advertising aimed at children altogether.

Question 19

The _____ is the federal agency that has authority over the labeling, packaging, branding, ingredient listing, and advertising of packaged foods and drug products, as well as cosmetics.

Accepted Answer

The Food and Drug Administration (FDA) is the federal agency that has authority over the labeling, packaging, branding, ingredient listing, and advertising of packaged foods and drug products, as well as cosmetics. The other options (A, B, C, D) do not exist as federal agencies.

Question 20

The origin of the Federal Trade Commission's (FTC's) corrective advertising program came from a deceptive advertising case involving

Accepted Answer

The answer of The origin of the Federal Trade Commission's...

Quiz 20: Regulation of Advertising and Promotion