Question 1

The _____ accepts cases dealing with product performance claims,superiority claims against competitive products,and all kinds of scientific and technical claims made in national advertising.

Accepted Answer

The National Advertising Division (NAD) reviews and investigates claims made in national advertising, including claims related to product performance, superiority claims against competitive products, and scientific and technical claims. The other options listed do not specifically deal with advertising claims. The U.S. Department of Justice and National Association of Attorneys General handle legal matters, while the American Association of Advertising Agencies is a trade organization for advertising agencies. The Federal Trade Commission does address advertising claims, but the NAD is a self-regulatory body that operates in conjunction with the FTC.

Question 2

of the Council of Better Business Bureaus?

Accepted Answer

All of the statements given about NAD and their functions are true. They ask for appropriate substantiation for advertising claims, negotiate with advertisers to modify or discontinue advertising if substantiation is unsatisfactory, refer unsubstantiated advertising claims to the FTC, and have an advertising monitoring program that is a source for many of the cases they review.

Question 3

of the Council of Better Business Bureaus:

Accepted Answer

The National Advertising Division (NAD) is a self-regulatory organization that examines advertising claims made by businesses and has the authority to investigate and potentially modify or discontinue those claims if they are found to be deceptive or unsupported. The other options listed do not accurately describe the role or actions of the Council of Better Business Bureaus.

Question 4

The courts have extended First Amendment protection to:

Accepted Answer

The courts have indeed extended First Amendment protection to commercial speech, which means that advertisements are now considered a form of speech that deserves some level of constitutional protection.

Question 5

Which of the following statements describes the media's role in the self-regulation of advertising?

Accepted Answer

The media can refuse to accept individual ads they find offensive or objectionable, and this is part of their role in self-regulating advertising. However, this does not mean they can refuse to accept advertising for an entire product class, and the decision to accept or reject ads is not solely based on generating revenue. The statement about the three major networks having the least stringent advertising review process is also incorrect and not relevant to the question.

Question 6

The _____ is a major trade association of the advertising business in the United States.It has its own standards of practice and creative code.

Accepted Answer

The American Association of Advertising Agencies (4A's) is a major trade association in the advertising business in the United States. It has developed its own standards of practice and creative code, and also provides various resources and services for its members. The other options listed are not specifically focused on the advertising industry.

Question 7

Television advertising:

Accepted Answer

Television advertising is more stringently self-regulated than any other medium.

Question 8

The advertising industry's most effective self-regulatory mechanism is the:

Accepted Answer

The NAD/NARB (National Advertising Division/National Advertising Review Board) is the most effective self-regulatory mechanism in the advertising industry. It is operated by the Better Business Bureau and reviews advertising claims to ensure they are truthful, accurate, and substantiated. The decision-making process is a collaborative effort between industry professionals and independent adjudicators, making it a respected and widely accepted process within the advertising community.

Question 9

Which of the following was NOT one of the groups involved in establishing the National Advertising Review Council?

Accepted Answer

The Federal Trade Commission was not involved in establishing the National Advertising Review Council. The other four options were involved in its establishment.

Question 10

is true?

Accepted Answer

The NARB (National Advertising Review Board) is a self-regulatory body and does not have the power to issue cease-and-desist orders. If an advertiser does not comply with its decision, the case can be referred to a government agency. Few cases go before the NARB, and most advertisers comply with its decisions.

Question 11

Better Business Bureaus provide control over advertising practices at a _____ level while the Council of Better Business Bureaus plays a major role in controlling advertising practices at a(n) _____ level:

Accepted Answer

Better Business Bureaus operate at a local level to address consumer complaints and advertising practices, while the Council of Better Business Bureaus coordinates efforts and sets standards at a national level.

Question 12

The _____ was formed by three advertising associations and the Council of Better Business Bureaus to sustain high standards of truth,accuracy,morality and social responsibility in national advertising.

Accepted Answer

The National Advertising Review Council (NARC) was formed by three advertising associations and the Council of Better Business Bureaus to sustain high standards of truth, accuracy, morality, and social responsibility in national advertising.

Question 13

Advertising on television and radio was regulated for many years through codes developed by the _____ until the courts found some of its regulations served to restrain trade.

Accepted Answer

The answer of Advertising on television and radio was regulated...

Question 14

Which of the following is a common complaint about the self-regulation of advertising?

Accepted Answer

All of the options listed are common complaints about the self-regulation of advertising. The NAD/NARB does have a limited budget and staff, and it can take a long time for the National Advertising Division to resolve a complaint. Some critics argue that self-regulation is self-serving to the advertising industry and lacks the power and authority to be a viable alternative to government regulation.

Question 15

The reason a magazine such as Good Housekeeping magazine regularly tests products and offers a "seal of approval" is to:

Accepted Answer

Testing products and offering a "seal of approval" helps enhance the credibility of the publication by showing that they are providing reliable and trustworthy information to their readers.

Question 16

The _____ is the largest and best known self-regulatory mechanism that has been established by the business community.

Accepted Answer

The Better Business Bureau is a well-established self-regulatory mechanism that has been established by the business community. It helps consumers settle disputes with businesses and provides information on ethical business practices. The other options listed are regulatory agencies established by the government. The National Advertising Review Council is a self-regulatory organization in the advertising industry, but it is not as well-known or as large as the Better Business Bureau.

Question 17

The _____ is the federal government agency having primary responsibility for the control and regulation of advertising.

Accepted Answer

The Federal Trade Commission (FTC) is the federal government agency responsible for the regulation and control of advertising, as well as overseeing business practices to ensure fair competition in the marketplace. The other options mentioned have different areas of focus: the Federal Communications Commission regulates communications-related industries, NAD/NARB is a voluntary industry self-regulatory program, the Better Business Bureau is a non-governmental organization that focuses on business ethics and customer complaints, and the Food and Drug Administration primarily regulates food and drug products.

Question 18

Which of the following media has the most stringent review and approval process for advertising?

Accepted Answer

The four major television networks (ABC, NBC, CBS, and Fox) have the most stringent review and approval process for advertising due to their larger audience reach and stricter regulatory oversight by the Federal Communications Commission (FCC). They also have their own standards and practices departments to review all advertisements before they are aired.

Question 19

If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB) ,the NARB:

Accepted Answer

The NARB does not have the authority to enforce rulings directly, such as stopping ads or imposing fines. Instead, if an advertiser does not comply, the NARB can refer the matter to a government agency like the Federal Trade Commission (FTC) for further action.

Question 20

Which of the following statements describes the NAD/NARB review process?

Accepted Answer

The answer of Which of the following statements describes the...

Quiz 21: Regulation of Advertising and Promotion