FIRST EXAM STUDY GUIDE:

Advertising Code

• Spence: Ch. 2
  • Explain whether the case studies would have been prevented by the BBB Code of Advertising. (You will have to read the code to answer the question.)
  
   
  
• BBB Code of Advertising
  • Who has primary responsibility for the truthfulness of advertising?
     
    
  • Advertisers should be prepared to do what?
     
    
  • Explain whether the code takes a deontological or teleological approach toward deceptive advertising.
     
    
  • Can an advertisement be misleading through implication and omission?
     
    
  • What limitation is placed on using the phrase "list price"?
     
    
  • What limitation is placed upon using the words "imperfects," "irregulars," "seconds" in comparative price advertising?
     
    
  • What restrictions are placed upon using the phrases "factory to you," "factory direct," "wholesaler," "wholesale prices" in making savings claims?
     
    
  • What restrictions are placed upon using the unqualified term "sales" in advertising?
     
    
  • What restrictions are placed upon advertising phrases for emergency or distress sales? Liquidation sale means what?
     
    
  • Explain whether an advertiser may place an asterisk or symbol next to the word "free" as a means of indicating that receipt of the "free" merchandise or service is conditioned upon a purchase.
     
    
  • Which federal statute and corresponding regulation govern advertising for credit and consumer leasing?
     
    
  • The composition and layout of advertisements should do what?
     
    
  • What is meant by objective (factual) and subjective (puffery) claims?
     
    
  • Claimed results must be based on what?
     
    
  • Which words should be used to disclose when merchandise requires partial or complete assembly by the purchaser?
     
    

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