Question 1

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

Accepted Answer

The National Advertising Review Board (NARB) and National Advertising Division (NAD) are part of the advertising industry's self-regulatory mechanism. They conduct reviews of advertising claims and help ensure that advertising is truthful and not deceptive. This system has been largely effective in preventing false or misleading advertising and promoting industry self-regulation.

Question 2

In 1977,the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise.

Accepted Answer

The U.S. Supreme Court's ruling in 1977 in the case of Bates v. State Bar of Arizona struck down restrictions on advertising by lawyers as unconstitutional and upheld their First Amendment right to advertise.

Question 3

Advertisers are often supportive of voluntary self-regulation because:

Accepted Answer

Advertisers prefer voluntary self-regulation because it is viewed as a way of limiting government interference of advertising. With self-regulation, advertisers can regulate themselves and avoid potentially stricter government regulations that could negatively impact their business operations.

Question 4

The NARC became involved in the self-regulation of electronic retailing when it initiated the:

Accepted Answer

The NARC (National Advertising Review Council) became involved in self-regulation of electronic retailing when it initiated the Electronic Retailing Self-Regulation Program (ERSP), which is a self-regulatory program that monitors advertising and ensures compliance with industry guidelines and standards for electronic retailing. The other choices are not related to the self-regulation of electronic retailing.

Question 5

BBB is the largest and best known self-regulatory mechanism in United States,for controlling advertising practices,that has been established by the business community.BBB stands for:

Accepted Answer

BBB stands for Better Business Bureau, which is a self-regulatory mechanism in the United States that controls advertising practices established by the business community.

Question 6

Policies and procedures for self-regulation of advertising industry are established by the ____.

Accepted Answer

The National Advertising Review Council (NARC) is responsible for establishing policies and procedures for self-regulation of the advertising industry. The NARC is comprised of four organizations, including the Better Business Bureau, the American Advertising Federation, the Association of National Advertisers, and the Council of Better Business Bureaus. NARC operates several self-regulatory programs, such as the National Advertising Division and the Children's Advertising Review Unit, to promote truth and accuracy in advertising. Neither A, B, D, nor E is directly involved in establishing policies for self-regulation of the advertising industry.

Question 7

Which of the following statements about advertising by attorneys,dentists and physicians is true?

Accepted Answer

The Supreme Court has ruled that professionals such as attorneys, dentists, and physicians have the right to advertise. This means that all three professions are allowed to advertise their services.

Question 8

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

Accepted Answer

If an advertiser refuses to comply with rulings made by the National Advertising Review Board, the NARB may refer the matter to an appropriate government agency for further action, such as the Federal Trade Commission (FTC). The FTC has the authority to impose fines and take legal action against companies that violate advertising regulations.

Question 9

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 10

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 the major trade association of the advertising business in the United States. It represents more than 600 member agencies that collectively account for more than 80% of the total advertising spend in the country. The 4A's has its own standards of practice and creative code which are widely followed by the industry.

Question 11

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

Accepted Answer

If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB.

Question 12

Which of the following is the appellate unit of the National Advertising Review Council?

Accepted Answer

The National Advertising Review Board (NARB) is the appellate unit of the National Advertising Review Council.

Question 13

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 NAD is a self-regulatory body that reviews and resolves advertising disputes. It specializes in cases dealing with claims made in national advertising related to product performance, superiority claims against competitive products, and scientific and technical claims. The other options listed may have some involvement in regulating advertising, but they do not specifically handle these types of cases.

Question 14

A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____.

Accepted Answer

The Better Business Bureau (BBB) is the largest and most well-known self-regulatory mechanism established by the business community to control advertising practices. The BBB works to ensure that advertising is truthful, accurate, and not misleading. The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) are government agencies that are responsible for regulating advertising practices, while the World Trade Organization (WTO) is an international organization that deals with trade policies and disputes. The Chamber of Deputies is the lower house of the legislative branch in some countries, such as Mexico and Italy, and is not related to advertising regulation.

Question 15

Self-regulation begins with the interaction of client and agency when:

Accepted Answer

Self-regulation begins when creative ideas are generated and submitted for consideration, as this is when agencies can identify and address potential issues with ethical standards and advertising substantiation before the ads are produced and aired. The other options involve reactive responses to legal or regulatory actions rather than proactive self-regulation.

Question 16

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 oversees these activities at a national level.

Question 17

The _____ is sponsored by the Electronic Retailing Association (ERA),although it works independently of the ERA to create an unbiased self-regulatory system.

Accepted Answer

The Electronic Retailing Self-Regulation Program is specifically mentioned as being sponsored by the Electronic Retailing Association (ERA) while also working independently to create an unbiased self-regulatory system. The other options (A, B, C, and E) do not fit this description.

Question 18

Which of the following statements concerning advertising by attorneys is true?

Accepted Answer

Advertising by attorneys is legal in the entire United States, but there are regulations set forth by state bar associations that lawyers must follow. While certain restrictions have been challenged and even overturned in court, such as bans on testimonials or use of certain media, attorneys must still adhere to rules on truthful and non-misleading advertising.

Question 19

The _____ examines advertising claims in direct-response advertising,including infomercials and home-shopping channels.

Accepted Answer

The Electronic Retailing Self-Regulation Program specifically focuses on examining advertising claims in direct-response advertising, including infomercials and home-shopping channels.

Question 20

Which of the following statements is true about National Advertising Review Council (NARC)?

Accepted Answer

NARC can handle cases at lower cost as compared to a court. It is a self-regulatory organization funded by the advertising industry, and therefore, does not impose government fines or penalties.

Quiz 18: Regulation of Advertising and Promotion

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

In 1977,the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise.

Advertisers are often supportive of voluntary self-regulation because:

The NARC became involved in the self-regulation of electronic retailing when it initiated the:

BBB is the largest and best known self-regulatory mechanism in United States,for controlling advertising practices,that has been established by the business community.BBB stands for:

Policies and procedures for self-regulation of advertising industry are established by the ____.

Which of the following statements about advertising by attorneys,dentists and physicians is true?

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

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.

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

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

Which of the following is the appellate unit of the National Advertising Review Council?

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.

A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____.

Self-regulation begins with the interaction of client and agency when:

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.

The _____ is sponsored by the Electronic Retailing Association (ERA) ,although it works independently of the ERA to create an unbiased self-regulatory system.

Which of the following statements concerning advertising by attorneys is true?

The _____ examines advertising claims in direct-response advertising,including infomercials and home-shopping channels.

Which of the following statements is true about National Advertising Review Council (NARC) ?

Quiz 18: Regulation of Advertising and Promotion

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

In 1977,the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise.

Advertisers are often supportive of voluntary self-regulation because:

The NARC became involved in the self-regulation of electronic retailing when it initiated the:

BBB is the largest and best known self-regulatory mechanism in United States,for controlling advertising practices,that has been established by the business community.BBB stands for:

Policies and procedures for self-regulation of advertising industry are established by the ____.

Which of the following statements about advertising by attorneys,dentists and physicians is true?

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

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.

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

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

Which of the following is the appellate unit of the National Advertising Review Council?

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.

A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____.

Self-regulation begins with the interaction of client and agency when:

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.

The _____ is sponsored by the Electronic Retailing Association (ERA) ,although it works independently of the ERA to create an unbiased self-regulatory system.

Which of the following statements concerning advertising by attorneys is true?

The _____ examines advertising claims in direct-response advertising,including infomercials and home-shopping channels.

Which of the following statements is true about National Advertising Review Council (NARC) ?

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.