Reference no: EM132210380

1. In evaluating claims made in advertisements and marketing communications, one of the principles the FTC uses in the evaluation is substantiation, which means the firm must be able to prove or backup any claim with independent, scientific evidence.

True

False

2. A trade regulation ruling is a ruling made by the Food and Drug Administration concerning a marketing practice and applies to all of the firms within the industry.

True

False

3. The federal agency that oversees the manufacture, sale, and distribution of tobacco and alcohol is the

Federal Communications Commission (FCC)

Bureau of Alcohol, Tobacco, and Firearms (BATF)

U.S. Post Service (USPS)

Food and Drug Administration (FDA)

4. A cease and desist order is issued by an administrative law judge and requires a company to

refrain from any similar practices in the future

immediately stop the disputed practice and to refrain from any similar practices in the future

immediately stop the disputed practice and to run corrective advertisements

immediately stop the disputed practice

5. While marketing has at times been conducted in unfair and unethical ways, if conducted ethically, marketing can be a powerful force in the success of organizations and provide consumers the opportunity to become more enlightened about product purchases.

False

True

6. The two overriding principles behind a number of pieces of legislation designed to regulate marketing and business activities is 1) to ensure free trade and open competition among firms and 2) to ensure firms do not mislead consumers with false and misleading marketing activities.

False

True