Question 1

The __________ can require a company to spend money on corrective advertising to rectify previous misleading ads.

Accepted Answer

The Federal Trade Commission has the power to require a company to spend money on corrective advertising to rectify previous misleading ads. The FDA regulates food and drugs, the Department of Justice deals with legal matters, the Better Business Bureau is a non-profit organization that focuses on promoting ethical business practices, and the American Marketing Association is a professional organization for marketers.

Question 2

A company can protect its competitive position under __________, which gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention.

Accepted Answer

Patent law gives inventors the exclusive right to their inventions for a certain period of time, during which others are prevented from making, using, or selling the same invention. This can protect a company's competitive position and prevent others from copying or using its inventions without permission.

Question 3

The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as

Accepted Answer

The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as consumerism. It focuses on promoting consumer rights, protections, and interests, and holding businesses and institutions accountable for their actions and practices. Consumerism has played a significant role in shaping various aspects of marketing and business practices, including product safety, labeling, advertising, pricing, and customer service.

Question 4

The purpose of copyright law is to

Accepted Answer

Copyright law grants exclusive rights to authors of creative works, such as literary or artistic works, to control how their works are used, reproduced, and distributed. This provides an incentive for authors to continue creating original works and allows them to benefit financially from their creations.

Question 5

For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required to include the following statement in all television advertisements for Listerine: "Listerine will not help prevent colds or sore throats or lessen their severity." The Federal Trade Commission (FTC) imposed this requirement because previous advertising had caused consumers to believe Listerine was effective against colds. This is an example of the FTC action known as

Accepted Answer

This is an example of corrective advertising, which is when a company is required to run ads correcting or clarifying previous misleading or false advertising. In this case, Warner-Lambert was required to include a statement clarifying that Listerine does not prevent or lessen the severity of colds or sore throats, which was necessary because previous advertising had implied otherwise.

Question 6

The purpose of __________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

Accepted Answer

Copyright law specifically deals with protecting literary, dramatic, musical, and artistic works from being copied or performed by others without the permission of the creator. Patent law covers inventions and processes, while trademark law protects logos and brand identities. Commercial law governs business transactions, and antitrust law regulates monopolies and competition.

Question 7

Which of the following is an action the Federal Trade Commission (FTC) can take to require a company to spend money to rectify previous misleading ads with revised information?

Accepted Answer

Corrective advertising is an action that the FTC can take to require a company to spend money to rectify previous misleading ads with revised information. This means that the company must create new ads that contain corrected information and ensure that they reach the same audience as the misleading ads. This action is taken to ensure that consumers are not misled and to promote fair competition in the marketplace.

Question 8

Which of the following is an action the Federal Trade Commission (FTC) can take to stop a company from continuing an unfair trade practice?

Accepted Answer

A cease and desist order is a legal order issued by the FTC requiring a company to stop engaging in an unfair trade practice. This is a common action taken by the FTC to stop companies from continuing to engage in illegal or unethical business practices. The other options listed are not typically used by the FTC to stop unfair trade practices.

Question 9

The purpose of patent law is to

Accepted Answer

Patent law grants inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention. This helps to protect the inventor's intellectual property and encourage innovation by providing a financial incentive for inventors to disclose their inventions to the public.

Question 10

Recent legislation including the Telephone Consumer Protection Act and the Controlling the Assault of Non-solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are

Accepted Answer

These acts are related to the regulation of marketing and promotional activities, specifically addressing unsolicited communications and spam, which are promotion-related issues.

Question 11

The Digital Millennium Copyright Act, signed in 1998,

Accepted Answer

The Digital Millennium Copyright Act (DMCA) improves protection for copyrighted digital products by establishing legal penalties for individuals or companies that attempt to circumvent digital rights management (DRM) technology. It also provides a "safe harbor" provision for internet service providers, protecting them from liability for copyright infringement as long as they promptly remove infringing material when notified by the copyright owner. The DMCA does not necessarily limit access to inappropriate materials, collect taxes on printed materials sold online, prevent pirating of non-trademarked digital products, or guarantee payment for online publishing.

Question 12

The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are examples of

Accepted Answer

The Child Protection Act and the Consumer Product Safety Act both specify product requirements, such as safety standards, that manufacturers must comply with in order to protect consumers, particularly children. These are examples of product safety legislation.

Question 13

There are many diet aids on the market. They promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you pay close attention, you will notice that each ad also contains the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to

Accepted Answer

Corrective advertising is a Federal Trade Commission (FTC)action that requires a company to spend money on advertising to correct previous misleading ads.The ads with the statement,"Results may vary," do not promise that everyone will have the same results,which reduces the likelihood they will be found to be misleading.

Question 14

Consumerism refers to

Accepted Answer

Consumerism refers to the movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions. It is about advocating for consumer rights, fair trade, and ethical production practices. It focuses on empowering consumers to make informed choices and hold corporations accountable for their actions.

Question 15

Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target practice areas across the United States. Pentagon officials, in response to environmentalists' concerns over lead poisoning in the soil, have invested over $12 million to develop an environmentally safe tungsten bullet. This is an example of one of the outcomes of

Accepted Answer

The answer of Each year, the U.S. Army shoots an...

Question 16

Which of the following legislative actions created a government entity to monitor business practices and stop unfair ones such as misleading promotions?

Accepted Answer

The Federal Trade Commission Act created the Federal Trade Commission (FTC) in 1914 with the purpose of preventing unfair business practices including misleading promotions. The other acts listed also address different aspects of consumer protection, but only the FTC was specifically created for this purpose.

Question 17

The Lanham Act (1946)

Accepted Answer

The Lanham Act provides for the registration of a company's trademarks.

Question 18

All of the following federal laws are designed to protect consumers except

Accepted Answer

The Digital Millennium Copyright Act is a federal law designed to protect copyright owners and regulate the use of copyrighted materials in the digital age. It is not directly related to protecting consumers.

Question 19

It had been the Campbell Soup Co.'s practice to insert clear glass marbles into the bottom of soup containers used in print advertisements to bring some of the soup's ingredients (e.g., noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the soup. Which agency would monitor such a practice?

Accepted Answer

The Federal Trade Commission (FTC) is responsible for monitoring and regulating advertising practices in the United States. In this case, the use of glass marbles to misrepresent the amount of solid ingredients in Campbell Soup Co.'s print advertisements would be in violation of the FTC's guidelines on deceptive advertising.

Question 20

Which of these laws came about as a response to the 1960s grassroots movement known as consumerism?

Accepted Answer

The Consumer Product Safety Act was passed in response to the growing concern for consumer safety in the 1960s, making it the best choice out of the options given that directly relates to the grassroots movement of consumerism. The Robinson-Patman Act and Clayton Act were both passed earlier, in the 1930s, and focused on anti-competitive business practices. The Digital Millennium Copyright Act was passed in 1998 and deals specifically with copyright protection in the digital age. The FTC Act was passed in 1914 and established the Federal Trade Commission to protect consumers from unfair and deceptive business practices.

Quiz 3: Scanning the Marketing Environment