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Which of the following prohibits consumers from taking cash from manufacturers,suppliers,or their representatives for making recommendations,reviews,or endorsements,unless full disclosure is provided?


A) Word of Mouth Marketing Association's ethics code
B) Council of Better Business Bureaus
C) American Association of Advertising Agencies' Creative Code
D) TARES Test of Ethical Advertising
E) Federal Trade Commission

F) None of the above
G) A) and E)

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The question of whether advertising creates social values or merely reflects them is known as the ________.


A) social-versus-economic debate
B) competitive-versus-market power debate
C) personal-versus-corporate debate
D) personal-versus-social debate
E) shape-versus-mirror debate

F) A) and E)
G) All of the above

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Explain the "reasonableness" element of the current FTC policy on deception.

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The perspective of the "reason...

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Why is it important for marketers to avoid the use of race-related stereotypes in advertisements?

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Racial stereotypes reduce a se...

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Which of the following does NOT have governmental authority concerning some form of advertising regulation?


A) Bureau of Alcohol,Tobacco,and Firearms
B) Federal Communications Commission
C) U) S.Postal Service
D) National Advertising Division
E) Food and Drug Administration

F) A) and D)
G) B) and E)

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A cereal maker that advertises its product as "the one that will make you smile" is using an exaggerated claim,not puffery.

A) True
B) False

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A copyright is a brand,corporate or store name,or distinctive symbol that identifies the seller's brand and thus differentiates it from the brands of other sellers.

A) True
B) False

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Which of the following is TRUE regarding customs?


A) Customs can be stronger than laws.
B) Customs are easily identified and explained.
C) Customs are basically the same around the world.
D) Customs have little impact on the effectiveness of advertising.
E) Only natives of a culture can ever understand local customs.

F) B) and D)
G) B) and C)

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Many professions write a code of ________ to help guide practitioners toward ethical behavior.


A) morals
B) ethics
C) laws
D) regulations
E) beliefs

F) None of the above
G) A) and E)

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Which of the following is the landmark corrective advertising case?


A) Valentine v.Chrestensen
B) Warner-Lambert v.FTC
C) 44 Liquormart,Inc.v FTC
D) Nike v.FTC
E) Cincinnati v.Discovery Network

F) C) and E)
G) A) and D)

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One ad for a drug used to overcome male erectile dysfunction depicted an old man in a nursing home acting like a young man chasing after several women at once.The ad was not allowed to air on the major television networks of NBC,CBS,and ABC.The ad did not contain any deceptive or unsubstantiated claims,so there was nothing untruthful in the ad.Furthermore,the ad followed the guidelines given by the FDA regarding broadcast advertising by indicating the major side effects and referring to a magazine ad for more information.Which of the following best explains why the ad was not allowed to air?


A) Stereotypes of "dirty old men" are not allowed in any advertising.
B) The National Advertising Division determined the ad was distasteful and disallowed it from being aired on television.
C) Not all advertising is given the same protection under the First Amendment of the Constitution.
D) The media can reject ads that violate their standards of good taste.
E) The behavior portrayed by the old man did not reflect the real behavior of the individual involved.

F) A) and E)
G) D) and E)

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The main concern the FTC has when an advertiser makes substitutes for products during a demonstration (such as using a mixture of glue and water instead of ice cream) is whether the ________.


A) substitution is necessary
B) demonstration uses puffery
C) advertiser indicates that substitutes are used in the demonstration
D) consumer knows substitutes are used in the demonstration
E) demonstration falsely upgrades the consumers' perception of the advertised brand

F) None of the above
G) A) and E)

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A ________ is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group.


A) norm
B) reference group
C) symbol
D) perception
E) stereotype

F) A) and B)
G) A) and C)

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Which of the following is NOT an FTC course of action for deception and unfair advertising?


A) consent decrees
B) cease-and-desist orders
C) incarceration
D) corrective advertising
E) consumer redress

F) C) and D)
G) A) and E)

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Public Citizen and the Cultural Environment Movement are both examples of ________.


A) consumer activist groups
B) industry groups
C) government agencies
D) federal regulators
E) professional oversight groups

F) A) and B)
G) A) and C)

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Which of the following prohibits unfair and deceptive acts and practices regardless of whether competition is injured?


A) Lanham Act
B) Wheeler-Lea Amendment
C) National Advertising Review Council
D) Pure Food and Drug Act
E) Magnuson-Moss Warranty

F) A) and D)
G) A) and E)

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Kim and her boyfriend were watching a movie on television when a commercial for a laxative came on.Kim was interested in this product,but she was embarrassed that her boyfriend was there when this ad came on.She quickly changed the channel.What key ethical issue challenging the standards of advertising professionals does this best illustrate?

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This example is a good illustration of t...

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Which of the following protects unique trademarks from infringement by competitors?


A) Pure Food and Drug Act
B) Wheeler-Lea Amendment
C) Lanham Act
D) Federal Trade Commission Act
E) FTC Improvement Act

F) C) and D)
G) B) and D)

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Under U.S.law,businesses can seek damages from a competitor who misrepresents the nature,characteristics,qualities,or geographic origin of the company's product in ________.


A) puffery
B) mission advertising
C) demand creation
D) comparative advertising
E) claim advertising

F) D) and E)
G) C) and D)

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Use the information below to answer the following questions. Amy is seven years old and loves to play with dolls.In fact,she has more than 20 Barbie dolls and lots of clothes and accessories,including three cars,a house with furniture,and an airplane.Mattel,the manufacturer of Barbie,also sells many other products with the Barbie brand,such as games,notebooks,and girls' clothing,to name a few. -One ad for Barbie shows an animated Barbie character diving from a diving board doing flips and twists before landing in a pool.The commercial was advertising a Barbie doll with a diving board that can be attached to the side of a bathtub.Amy begged her mother for the doll and got it,but she was very disappointed when the doll did not perform as she had seen it perform in the commercial.She realized she had to hold on to the doll to make it flip around and dive into the water.What was wrong with this ad?

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This scenario is getting at the issue of...

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