When the Federal Trade Commission Determines That an Ad Is

question 29

Multiple Choice

When the Federal Trade Commission determines that an ad is deceptive or unfair, it can:

• A) require the advertiser to run cooperative advertising.
• B) convince the advertiser to sign a consent decree.
• C) require the advertiser to reimburse consumers who bought the product.
• D) force the firm that ran the deceptive ad to get "advance clearance" on all future ad campaigns.
• E) place a federal representative in the deceptive firm's advertising department to oversee future ad campaigns.

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Definitions:

Criterion Contamination

The issue in performance evaluation where irrelevant factors influence the appraisal, potentially leading to inaccurate results.

Inter-Rater Reliability

The degree of agreement among different individuals assessing or scoring the same event, demonstrating consistency in measurements.

Multinational Corporation

A corporation that has its facilities and other assets in at least one country other than its home country, and operates on a global scale.

Transnational Corporation

A firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.