Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Jack
received three unordered CDs in the mail from Modern Music CD Club. An accompanying letter says that
he can keep the CDs for only $2 each, provided he joins the CD club and agrees to buy 4 more CDs in
the next year. Jack a. | may keep the CDs without paying for
them. | b. | must pay $2 for each CD he keeps. | c. | must send the
CDs back to the CD club if he decides not to join the club. | d. | none of the
above | | |
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2.
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Simon
shows up at Carl’s door selling chocolates for $10 a box. After buying one box of the
chocolates, Carl wishes to cancel the contract. Under federal law, Carl a. | can cancel
within three business days. | b. | cannot cancel the contract because it is for $25 or
less. | c. | does not have a contract with Simon. | d. | none of the
above | | |
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3.
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Advertising is a. | a protected form of free speech. | b. | is
effective. | c. | widespread, with more than $225 billion spent on advertising in
2000. | d. | all of the above | | |
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4.
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Tobacco advertising is controversial because a. | cartoon
characters are cool. | b. | smoking is the nation’s leading preventable cause of
death. | c. | there is no free speech protection for tobacco
advertisements. | d. | none of the above | | |
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5.
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Salim
answers an ad for a $60 desk at the local warehouse store. When he gets there, the salesperson says
that the $60 desk is not sturdy enough to hold a computer and that the best deal is the $200 desk,
which is sturdy. Salim is the victim of a. | bait and switch. | c. | e-commerce. | b. | an
infomercial. | d. | none of the
above | | | | |
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Completion
Complete each sentence or
statement.
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Complete each of the following statements with the appropriate choice below.
Some choices are not used.
bait and
switch | referral sale | corrective
advertising | spam | e-commerce | telemarketer | loss leaders | tobacco advertising | | |
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6.
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In
____________________ the advertiser must run ads for a specified period letting consumers know that
past ads were deceptive.
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7.
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Misrepresentations in ads that attempt to trick buyers in buying items is
____________________.
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8.
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Unsolicited e-mail is ____________________.
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9.
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The
practice of ____________________ allows sellers legally to advertise specials at very low prices to
get customers into the store, so long as sellers have a reasonable quantity on hand and they do not
disparage the item in order to get the buyer to buy a more expensive product.
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10.
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____________________ is a rapidly expanding area of commercial activity.
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Matching
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Match each statement with the correct item below. Some items may not be
used. a. | bait and
switch | e. | open-ended
estimate | b. | telemarketer | f. | puffing | c. | Internet
commerce | g. | slamming | d. | referral sale | h. | spamming | | | | |
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11.
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illegal practice of switching a consumer’s long distance carrier without
consent
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12.
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statements exaggerating the desirability of a product or service
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13.
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a
repair agreement term which provides that all repairs considered necessary are
authorized
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14.
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a
seller offers a consumer incentives for generating additional sales
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15.
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a
telephone salesperson
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Short Answer
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16.
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What
is the difference between illegal advertising and puffing?
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17.
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What
is the National Do Not Call Registry?
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