A Potentially Problematic Shampoo Ad Is Submitted to the National

question 112

Multiple Choice

A potentially problematic shampoo ad is submitted to the National Advertising Review Board by an upset major competitor that considers its wording to be deceptive.The NARB has several options in the actions it may take, but which outcome is it not authorized to direct?

• A)persuading the advertiser to change the wording in the ad
• B)assessing a fine against the advertiser
• C)publicly identifying the advertiser, complaint, or findings
• D)dismissing the case altogether

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Definitions:

Negligent

Failing to take proper care in doing something, leading to unintended damage or harm.

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for loss caused by specific events.

Declaratory Judgment Action

A legal procedure wherein the court determines the rights of parties without ordering any specific action or awarding damages.

Subrogation Action

A legal action where an insurer seeks to recover the amount of an insurance claim paid to the insured from the party responsible for causing the loss.