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mark 453 chapter 14.doc

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MARK 453
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Chapter 14 Regulations and Ethical Concerns1 One reason the food industry has been slow to respond to concerns about too much sodium in foods is that impact it would have on brand imageAnswerFALSE2 The Food and Drug Administration FDA regulates and oversees the packaging and labeling of products It also monitors advertising on food packages and advertisements for drugsAnswerTRUE3 The Federal Trade Commission FTC monitors advertising on food packages and advertisements for drugs AnswerFALSE4 A person targeted by a mail fraud campaign should contact the Federal Communication Commission FCC AnswerFALSE5 The Federal Communication Commission FCC is responsible for monitoring television advertising directed to children in terms of how many minutes per hour is directed to children AnswerTRUE6 The Federal Communication Commission FCC has jurisdiction over the content of advertisements transmitted by mass mediaAnswerFALSE7 Under FCC rules television stations are limited to 12 minutes per hour of childrens advertising during weekdays and 10 minutes per hour during weekendsAnswerTRUE1 Copyright2010 Pearson Education Inc Publishing as Prentice Hall8 The federal agency that presides over marketing communications is the Federal Communications Commission FCCAnswerFALSE9 When the FTC Act was passed in 1914 the FTCs responsibility was to enforce antitrust laws and to protect businesses from one anotherAnswerTRUE10 The WheelerLea Amendment 1938 of the Federal Trade Commission Act prohibits false and misleading advertisements AnswerTRUE11 When a substantial number of people are misled by a series of commercials it is deemed to be deceptive or misleading AnswerTRUE12 A typical person must believe the content of an advertisement to be false in order for the WheelerLea Amendment to apply AnswerTRUE13 The WheelerLea Amendment makes advertising puffery illegal AnswerFALSE14 Puffery exists when a firm makes an exaggerated statement about a good or service while a claim is a factual statement made about a good or service AnswerTRUE2 Copyright2010 Pearson Education Inc Publishing as Prentice Hall15 The key difference in terms of the Federal Trade Commission FTC and the courts between puffery and a claim is that puffery is not considered to be a factual statement while a claim is considered to be a factual statement that can be proven true or false AnswerTRUE16 Terms normally associated with puffery include best greatest and finestAnswerTRUE17 Although the word better is normally accepted as puffery the best is somewhat vague and implies a comparison which has recently been tested through the FTCAnswerFALSE18 When a statement is made that is deemed to be puffery then the concept of substantiation appliesAnswerFALSE19 Substantiation means that an advertising claim or promise must be proven with data facts or through competent and reliable evidenceAnswerTRUE20 If a company uses endorsers the statements made by the endorsers must be truthful and represent their actual experiences or opinions AnswerTRUE21 In terms of substantiation of a claim in an advertisement all claims must reflect the typical experience that a customer would expect to encounter from using a good or service unless the advertisement clearly and prominently states otherwise AnswerTRUE3 Copyright2010 Pearson Education Inc Publishing as Prentice Hall
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