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A(n) _____ is an agreement to stop the practice or advertising in question, is for settlement purposes only, and does not constitute an admission of guilt by an advertiser.


A) cease-and-desist order
B) consent order
C) ad substantiation agreement
D) affirmative disclosure order
E) injunction

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

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Which of the following agencies is responsible for tax collection for the liquor industry?


A) The Federal Commission for Substance Abuse Control
B) The Food and Drug Administration
C) The Bureau of Alcohol, Tobacco, Firearms and Explosives
D) The Federal Trade Commission
E) The National Association of Attorneys General

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

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Better Business Bureaus (BBBs) provide effective control over advertising practices at the _____ level.


A) local
B) national
C) global
D) industry-wide
E) international

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

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Controversy over the Federal Trade Commission's (FTC's) authority to regulate unfair advertising practices began in 1978, when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children.


A) "cease-and-desist"
B) "kid vid"
C) affirmative disclosures
D) Wheeler-Lea
E) Magnuson-Moss

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

Correct Answer

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In 1977, the _____ held that state bar associations' restrictions on advertising are unconstitutional and that attorneys have First Amendment freedom of speech rights to advertise.


A) Federal Trade Commission
B) American Bar Association
C) U.S.Supreme Court
D) Better Business Bureau
E) American Marketing Association

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

Correct Answer

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Television advertising is:


A) typically not used for hard liquor advertising.
B) regulated through codes developed and enforced by the Federal Trade Commission.
C) regulated by affiliate networks.
D) more stringently self-regulated than any other medium.
E) considered a declining advertising medium.

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

Correct Answer

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