Question 1

Texaco claimed its ClearSystem gasoline cleaned car engines,boosted mileage,and reduced pollution emissions better than any other gas.Chevron contended its products were just as good as Texaco's.The _____ law made it easier for Chevron to sue Texaco for this perceived misrepresentation.

Accepted Answer

The answer of Texaco claimed its ClearSystem gasoline cleaned car...

Question 2

Pizza Hut launched a civil suit against Papa John's pizza claiming false and misleading advertising made Pizza Hut's pizza look inferior to Papa John's.The _____ was the federal law that made this suit possible.

Accepted Answer

The Lanham Act is a federal law that prohibits false advertising and misleading statements in commercial advertising. Pizza Hut's civil lawsuit against Papa John's for false and misleading advertising falls under the provisions of the Lanham Act.

Question 3

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

Accepted Answer

The Food and Drug Administration (FDA) has authority over the labeling, packaging, branding, ingredient listing and advertising of packaged foods and drug products. The other agencies listed (Federal Trade Commission, Federal Communications Commission, U.S. Postal Service, and Bureau of Alcohol, Tobacco, and Firearms) have different areas of responsibility and authority.

Question 4

Under the Children's Television Act,:

Accepted Answer

The Children's Television Act limits advertising on children's programs to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends.

Question 5

The ____ has been heavily involved in the regulation of advertising of prescription drugs.

Accepted Answer

The Food and Drug Administration (FDA) is responsible for regulating the advertising of prescription drugs in the United States. They ensure that advertisements are truthful and not misleading, and that they provide accurate information about the risks and benefits of the drugs.

Question 6

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

Accepted Answer

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

Question 7

Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires.The company must conduct careful studies to provide support for the claim because:

Accepted Answer

This answer states that Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. The Lanham Act is a federal law that regulates trademarks, service marks, and unfair competition. Competitors who believe that Acme's claim is false or misleading may bring a lawsuit against the company under the Lanham Act. Therefore, Acme must conduct careful studies to provide support for the claim to avoid potential lawsuits under the act.

Question 8

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

Accepted Answer

The Food and Drug Administration was given the jurisdiction to regulate the advertising of cigarettes and smokeless tobacco after President Clinton signed an executive order declaring nicotine an addictive drug in 1996. The other options listed do not have the authority or relevance in this matter.

Question 9

If a firm advertises a product that is not in the category covered by the FTC ad substantiation program,the advertiser:

Accepted Answer

Although the FTC ad substantiation program does not cover the category of the advertised product, the advertiser may still be vulnerable to a challenge from competitors under the Lanham Act. The Lanham Act allows competitors to sue for false advertising if they feel that the claims made by the advertiser are misleading or inaccurate. Therefore, the advertiser should be careful in making claims about their product, even if it is not covered by the FTC program.

Question 10

Today,the Federal Trade Commission is:

Accepted Answer

The Federal Trade Commission is involved in all of the activities mentioned in options A, B, C, and D. Therefore, the best answer would be E, accurately described by all of the above.

Question 11

Direct-response advertisers that use the U.S.mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the:

Accepted Answer

The U.S. Postal Service has the authority to regulate and investigate fraudulent or deceptive mailings under the Mail Fraud Statute. This includes direct-response advertisers who use the mail to deceive consumers with false promises of get-rich-quick schemes.

Question 12

Which type of advertising claim is most likely to result in one company suing another under the Lanham Act?

Accepted Answer

Comparative advertising claims directly compare a company's product or service to that of a competitor. This type of claim is more likely to result in one company suing another under the Lanham Act for false or misleading advertising. The Lanham Act prohibits false or misleading statements in commercial advertising and allows companies to sue their competitors for damages arising from such statements.

Question 13

The _____ is the governmental agency that regulates and controls the advertising of beer,liquor,and cigarettes.

Accepted Answer

The Bureau of Alcohol, Tobacco and Firearms (ATF) is the governmental agency that regulates and controls the advertising of beer, liquor, and cigarettes. The ATF is a part of the U.S. Department of Justice and is responsible for enforcing federal laws related to alcohol and tobacco. They oversee the issuance of licenses to manufacturers, wholesalers, and retailers of alcohol and tobacco products, as well as monitor compliance with labeling, packaging, and advertising regulations.

Question 14

The _____ closed a loophole in the Lanham Act and facilitated the ease with which one company can sue a competitor for making false advertising claims about the first company's products.

Accepted Answer

The Trademark Revision Act of 1988 closed a loophole in the Lanham Act and made it easier for companies to sue competitors for making false advertising claims about their products. This amendment also strengthened the penalties for trademark infringement and provided more protection for famous trademarks.

Question 15

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

Accepted Answer

The Federal Communications Commission (FCC) is a federal agency that regulates broadcast communication in the United States. It was founded in 1934 and has authority over the radio, television, telephone and telegraph industries. The FCC's role is to ensure that these industries operate in the public interest while also promoting competition and innovation.

Question 16

The _____ gives one company the right and ability to challenge another's advertising.This act is one of the most significant developments in advertising regulation in recent years.

Accepted Answer

The answer of The _____ gives one company the right...

Question 17

The _____ is a government regulation that is increasingly being used by companies to sue competitors for false or misleading advertising claims.

Accepted Answer

The Lanham Act is a government regulation that allows companies to sue their competitors for false or misleading advertising claims. It is increasingly being used by companies to protect their brands from false advertising claims made by competitors. The other choices are not relevant to false advertising claims or do not provide the necessary legal framework for such claims.

Question 18

The Federal Communications Commission has recently become involved in issues affecting:

Accepted Answer

The answer of The Federal Communications Commission has recently become...

Question 19

Under the FTC program of _____,Novartis Corporation was required to run advertising informing consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain.The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication.

Accepted Answer

The scenario described fits the definition of corrective advertising, which is a type of advertising required by the FTC to counteract false or misleading advertising claims that a company has made in the past. In this case, Novartis Corporation was required to run corrective advertising to inform consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain. The purpose of corrective advertising is to correct any false impressions that consumers may have gained from the previous advertising campaign.

Question 20

_____ is the most controversial of all the Federal Trade Commission's programs.

Accepted Answer

Corrective advertising is the most controversial program of the Federal Trade Commission. This program requires companies to run ads to correct previous deceptive advertising claims. Companies often resist this program because they view it as a violation of their freedom of speech and it can be costly to run these ads.

Quiz 21: Regulation of Advertising and Promotion