Chapter 2

Which of the following statements is true about deceptive advertising? 1) Puffery can be called deceptive advertising when consumers believe it to be true. 2) Deceptive advertising is sometimes used because it establishes long-term consumer confidence in the product being advertised. 3) To be labeled as deceptive, ads must contain some claims which are not prior substantiated. 4) Deceptive ads serve the best interests of the advertisers. 5) There are no regulations governing deceptive advertising.

1) Puffery can be called deceptive advertising when consumers believe it to be true.

Which of the following statements is true about how advertising affects competition? 1) Some observers believe that advertising actually restricts competition. 2) Advertising is not a barrier to competition. 3) Advertising is regulated so that it does not impede competition. 4) Intense advertising often encourages the entry of new brands and manufacturers into the marketplace. 5) Non-advertised products cannot compete with advertised products.

1) Some observers believe that advertising actually restricts competition.

The Federal Trade Commission (FTC) regulates: 1) advertising for products sold in interstate commerce. 2) hazardous packaging and advertising of products. 3) liquor advertisements, through its power to suspend, revoke or deny renewal of manufacturing and sales permits for distillers and brewers. 4) the advertising, packaging and branding of all packaged goods. 5) the placement and wording of warning statements in advertisements for toys, household products and other hazardous substances that can cause injury or death.

1) advertising for products sold in interstate commerce.

Which federal agency would have the authority to deal with the fact that a brand of hotdog marked "Low Fat" contains only ten percent less fat than regular hotdogs? 1) The Library of Congress 2) The Patent and Trademark Office 3) The Food and Drug Administration 4) The united states post office 5) The federal communications commission

3) The Food and Drug Administration

U.S. Caviar ran ads in an onboard American Airlines magazine offering real Russian caviar at substantially lower prices than it typically sold for. Later FTC investigators determined that the caviar U.S. Caviar was selling as exotic Russian caviar was produced in the U.S. and was actually overpriced given its quality. U.S. Caviar engaged in: 1) an ethical lapse. 2) unethical advertising. 3) deceptive advertising. 4) an ethical dilemma. 5) anti-competitive advertising.

3) deceptive advertising.

The National Advertising Division (NAD) of the National Advertising Review Council (NARC): 1) promotes the benefits of advertising to its critics. 2) serves as the appeal board for decisions made by the National Advertising Review Board. 3) is a monitoring and investigative body. 4) protect consumers from unfair and deceptive advertising. 5) guides new businesses in the development of ethical advertising codes.

3) is a monitoring and investigative body.

Mike and Lou are going to the mall. Mike wants to buy a pair of jeans and Lou wants to buy a pair of Levi boot-cut jeans. Mike illustrates _____ demand while Lou illustrates _____ demand. 1) secondary; kinked 2) longitudinal; circular 3) external; internal 4) primary; selective 5) selective; primary

4) primary; selective

In a 1940 issue of Time magazine, the Chesapeake and Ohio train lines advertised that riding its trains would provide travelers with "the most pleasant trip they have ever known." This advertiser is using: 1) unfair advertising. 2) hyperbole. 3) deceptive advertising. 4) puffery. 5) exploitative advertising.

4) puffery.

Which of the following can be copyrighted? 1) An idea for an ad campaign featuring comic characters from the 1930s 2) The dynamic ribbon used in Coca-Cola ads 3) The U.S. Marine Corps symbol 4) The NBC peacock 5) The newest book by Dan Brown

5) The newest book by Dan Brown

When Grace looked at the container of Roundup weed and grass killer, she saw a notice that read, "Avoid contact with eyes. This product can cause eye irritation". This _____ would be important to all of us who wanted to take the best possible care of our eyes. 1) package requirement 2) testimonial 3) nutritional claim 4) consent decree 5) affirmative disclosure

5) affirmative disclosure