Question 1

In terms of gathering information about consumers, the information gathering source that has raised the most controversy lately is the information obtained through credit card applications.

Accepted Answer

In terms of gathering information about consumers, the information gathering source that has raised the most controversy lately is the use of cookies with Internet web browsing.

Question 2

When discussing the ethical issue that marketing violates consumer rights to privacy, it is important to keep in mind that marketers are interested in groups of people that fit a certain pattern, not in individual consumers.

Accepted Answer

Marketers typically analyze data to identify trends and patterns among groups to target their advertising effectively, rather than focusing on individual consumers. However, privacy concerns arise when personal data is collected and used without consent.

Question 3

As a marketer, it is important to remember that some marketing tactics may be legal, but they may still be perceived as unethical or in bad taste by various individuals, groups, nations, and even societies.

Accepted Answer

As a marketer, it is important to remember that some marketing tactics may be legal, but they may still be perceived as unethical or in bad taste by various individuals, groups, nations, and even societies.

Question 4

In facing an ethically questionable issue, individuals are influenced by their personal background and experiences as well as job-related factors.

Accepted Answer

Personal background, experiences, and job-related factors all contribute to how individuals perceive and respond to ethical issues.

Question 5

Britney is facing a tough ethical dilemma as marketing director for her firm. While society and its views will have an influence on her decision, a more relevant influence will be forces within her own company.

Accepted Answer

Britney is facing a tough ethical dilemma as marketing director for her firm. While society and its views will have an influence on her decision, a more relevant influence will be forces within her own company and her own personal ethical standards.

Question 6

As businesses grew in size during the 1800s, the federal government was concerned that, if left unchecked, large businesses could dictate prices, distribution, and access to goods and services and thus restrain free trade.

Accepted Answer

As businesses grew in size during the 1800s, the federal government was concerned that, if left unchecked, large businesses would develop monopolies that could dictate prices, distribution, and access to goods and services and thus restrain free trade.

Question 7

To prevent monopolies and trusts that could restrict trade, the Lanham Act was passed in 1946.

Accepted Answer

The Sherman-Antitrust Act was passed in 1890 to prevent monopolies and trusts that could restrict free trade.

Question 8

To prevent monopolies and trusts that could restrict trade and to prevent discrimination by sellers, the Sherman-Antitrust Act was passed in 1890, the Clayton Act in 1914, and the Robinson-Patman Act in 1936.

Accepted Answer

To prevent monopolies and trusts that could restrict trade and to prevent discrimination by sellers, the federal government enacted three pieces of legislation: the Sherman-Antitrust Act of 1890, the Clayton Act in 1914, and the Robinson-Patman Act in 1936.

Question 9

The Hart-Scott-Rodino Act of 1976 requires corporations planning to merge to notify and seek the approval of the government before any action is taken.

Accepted Answer

The Hart-Scott-Rodino Antitrust Improvements Act of 1976 requires companies to file pre-merger notifications with the Federal Trade Commission and the Department of Justice to allow for antitrust review before completing certain large mergers and acquisitions.

Question 10

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which sets safety standards for products manufactured and ensures that manufacturers follow the safety standards and regulations.

Accepted Answer

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which sets safety standards for products manufactured and ensures that manufacturers follow the safety standards and regulations.

Question 11

The Wheeler-Lea Amendment of 1938 prohibits charging different prices to different buyers of the same merchandise and requires sellers that offer a service to one buyer to make the same service offer available to all buyers.

Accepted Answer

The Robinson-Patman of 1936 prohibits charging different prices to different buyers of the same merchandise and requires sellers that offer a service to one buyer to make the same service offer available to all buyers.

Question 12

The Federal Trade Commission (FTC) is the primary agency responsible for ensuring free trade among businesses and for investigating false, deceptive, or misleading claims in advertising and other types of marketing communications.

Accepted Answer

The FTC is tasked with protecting consumers and ensuring a strong competitive market by enforcing laws against deceptive advertising and unfair business practices.

Question 13

The Consumer Product Safety Commission (CPSC) is responsible for ensuring that food is safely processed and packaged.

Accepted Answer

The Consumer Product Safety Commission (CPSC) is responsible for setting safety standards for products used by consumers in or around their homes. Responsible for ensuring that food is safely processed and packaged belongs to the FDA.

Question 14

The agency with the most impact on marketing is the Federal Trade Commission (FTC).

Accepted Answer

The Federal Trade Commission (FTC) has the most impact on marketing since they are responsible for investigating false, deceptive or misleading advertising and marketing claims.

Question 15

A firm violates the law concerning misleading or deceptive advertising only if it can be shown that the company expressly intended to do so.

Accepted Answer

Intent is not the issue. A firm can violate the law concerning misleading or deceptive advertising even though the company did not expressly intend to do so.

Question 16

According to the FTC, an advertisement or marketing communication is deemed to be deceptive or misleading when a substantial number of people or the "typical person" is left with a false impression or misrepresentation of the product and/or the misrepresentation induces people or the typical person to make a purchase.

Accepted Answer

The FTC considers an advertisement deceptive if it misleads a significant portion of the audience or the average consumer, leading them to make a purchase based on false impressions.

Question 17

Only consumers, not businesses, can sue under the guidelines of the FTC concerning deceptive and misleading advertising.

Accepted Answer

Both consumers and businesses can sue under the guidelines of the FTC concerning deceptive and misleading advertising. In fact, almost anyone can file a complaint with the FTC.

Question 18

When the FTC receives a complaint, the initial investigation must be confidential to protect both the FTC and the company in case no violation is found.

Accepted Answer

When the FTC receives a complaint, the initial investigation is normally confidential, but does not have to be.

Question 19

In an investigation of misleading or deceptive advertising, if the FTC feels a violation has occurred, the first step in resolving the issue will be to issue a consent order.

Accepted Answer

In an investigation, if the FTC feels a violation has occurred, the first step in resolving the issue will be to issue a consent order. If the company signs the consent order, they agree to stop the disputed practice, but do not admit guilt.

Question 20

If the FTC issues a consent order and an agreement to stop the disputed marketing practice cannot be agreed upon, the FTC may then issue what is called an administrative complaint, which is a formal hearing before an administrative law judge.

Accepted Answer

If a consent order cannot be agreed upon, the FTC can issue an administrative complaint, leading to a formal hearing before an administrative law judge.

Quiz 3: Marketing Ethics, Regulations, and Social Responsibility

In terms of gathering information about consumers, the information gathering source that has raised the most controversy lately is the information obtained through credit card applications.

When discussing the ethical issue that marketing violates consumer rights to privacy, it is important to keep in mind that marketers are interested in groups of people that fit a certain pattern, not in individual consumers.

As a marketer, it is important to remember that some marketing tactics may be legal, but they may still be perceived as unethical or in bad taste by various individuals, groups, nations, and even societies.

In facing an ethically questionable issue, individuals are influenced by their personal background and experiences as well as job-related factors.

Britney is facing a tough ethical dilemma as marketing director for her firm. While society and its views will have an influence on her decision, a more relevant influence will be forces within her own company.

As businesses grew in size during the 1800s, the federal government was concerned that, if left unchecked, large businesses could dictate prices, distribution, and access to goods and services and thus restrain free trade.

To prevent monopolies and trusts that could restrict trade, the Lanham Act was passed in 1946.

To prevent monopolies and trusts that could restrict trade and to prevent discrimination by sellers, the Sherman-Antitrust Act was passed in 1890, the Clayton Act in 1914, and the Robinson-Patman Act in 1936.

The Hart-Scott-Rodino Act of 1976 requires corporations planning to merge to notify and seek the approval of the government before any action is taken.

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which sets safety standards for products manufactured and ensures that manufacturers follow the safety standards and regulations.

The Wheeler-Lea Amendment of 1938 prohibits charging different prices to different buyers of the same merchandise and requires sellers that offer a service to one buyer to make the same service offer available to all buyers.

The Federal Trade Commission (FTC) is the primary agency responsible for ensuring free trade among businesses and for investigating false, deceptive, or misleading claims in advertising and other types of marketing communications.

The Consumer Product Safety Commission (CPSC) is responsible for ensuring that food is safely processed and packaged.

The agency with the most impact on marketing is the Federal Trade Commission (FTC).

A firm violates the law concerning misleading or deceptive advertising only if it can be shown that the company expressly intended to do so.

Only consumers, not businesses, can sue under the guidelines of the FTC concerning deceptive and misleading advertising.

When the FTC receives a complaint, the initial investigation must be confidential to protect both the FTC and the company in case no violation is found.

In an investigation of misleading or deceptive advertising, if the FTC feels a violation has occurred, the first step in resolving the issue will be to issue a consent order.

If the FTC issues a consent order and an agreement to stop the disputed marketing practice cannot be agreed upon, the FTC may then issue what is called an administrative complaint, which is a formal hearing before an administrative law judge.