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The government can ban truthful commercial speech.

A) True
B) False

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________ legislate(s) laws while ________ interpret(s) those laws in specific situations.


A) Courts; Congress
B) Congress; courts
C) The president; courts
D) The president; Congress
E) Congress; the FTC

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

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Businesses can seek damages from an advertiser who "misrepresents the nature, characteristics, qualities, or geographic origin in comparative advertising" under the ________.


A) Uniform Commercial Code
B) Pure Food and Drug Act
C) Wheeler-Lea Amendment
D) Lanham Act
E) Magnuson-Moss Warranty Act

F) B) and C)
G) B) and E)

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Which arm of the federal government interprets laws regarding advertising?


A) executive (the president)
B) courts
C) Federal Communications Commission
D) Congress
E) Federal Trade Commission

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

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A spokesperson who endorses a brand must actually use the product for this to be a legal message strategy.

A) True
B) False

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MINI-CASE 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. -Refer to Mini-Case. What self-regulatory agency monitors national advertising targeted at children?

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MINI-CASE 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. -Refer to Mini-Case. Amy's mother limits Amy's television viewing time because she feels there is just too much advertising influencing her child to want more stuff. However, there are restrictions regarding advertising toward children. Name and describe the laws and regulations specific to television advertising targeted at children.

Correct Answer

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MINI-CASE 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. -Refer to Mini-Case. Amy saw a commercial on television for a newer Barbie house than the one she currently has, and of course, she wanted it. Advertising has been criticized because it is used to drive people to feel a need or want. What is this called and why is advertising criticized?

Correct Answer

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Advertising's economic role has been criticized in the way it creates ________, which means people want or feel a need to buy and use a product.


A) desires
B) demand
C) motives
D) markets
E) profit

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

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Which is NOT a basic element of the current FTC policy on deception?


A) preventable
B) misleading
C) reasonableness
D) injurious
E) all of the above are basic elements of the current FTC policy on deception

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

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A ________ identifies how professionals in the industry should respond when faced with ethical questions.


A) code of behavior
B) code of standards
C) code of laws
D) code of responsibility
E) code of discipline

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

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Cigarette advertising on television and radio has been banned since ________.


A) 1961
B) 1971
C) 1981
D) 1991
E) 2001

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

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