Auto Lottery Advertising Regulations Quiz

1. What is the primary responsibility for truthful and non-deceptive advertising in Mississippi?

• The primary responsibility lies with consumers.
• The primary responsibility is with the government.
• The primary responsibility for truthful and non-deceptive advertising rests with the advertiser.
• The primary responsibility is shared equally among all parties.

2. What must advertisers be prepared to do in Mississippi?

• Advertisers must offer prizes that exceed the value of the product sold.
• Advertisers must substantiate any offers made before publication.
• Advertisers must provide a free vehicle to every participant.
• Advertisers must limit their advertisements to one vehicle type only.

3. What constitutes untrue or misleading statements in Mississippi advertising?

• Advertisements that are creative and engaging.
• Advertisements that are untrue, misleading, or deceptive.
• Advertisements that are limited to local markets.
• Advertisements that promote discounts and offers.

4. What should a dealer disclose if they have limited vehicle availability in their advertisement?

• The advertisement should disclose that quantity is limited.
• The advertisement should offer free maintenance.
• The advertisement should promise a full refund on all purchases.
• The advertisement should guarantee delivery within a week.

5. What type of statements are prohibited in dealer advertisements in Mississippi?

• Special offers with limited stock
• Statements such as `write your own deal`
• Price comparisons to competitors
• Quotes from customer testimonials

6. How should `used` vehicles be identified in advertisements according to Mississippi regulations?

• Only vehicles older than ten years need to be labeled as used.
• Vehicles should only be described as `previously owned.`
• All vehicles must have a bright red label indicating they are used.
• Vehicles of the current and any preceding model year which are `used` shall be clearly identified as such.

7. What must be clearly apparent in lease advertisements in Mississippi?

• The total price of the vehicle is included.
• The mileage limit on the lease is flexible.
• The transaction advertised is a lease.
• The dealer`s inventory is vast and varied.

8. What must credit terms comply with under Mississippi law?

• The advertisement must include testimonials from previous borrowers.
• The random selection of credit offers on a first-come basis.
• The interest rates must always be lower than national averages.
• The specific disclosure requirements of the credit advertising provisions of the `Truth-in-Lending` Act and Regulation Z.

9. What are the compliance requirements for lease terms in Mississippi advertisements?

• The transaction must be identified as a purchase in advertisements.
• The specific disclosure requirements of the lease advertising provisions of the `Truth-in-Lending` Act and Regulation M.
• Advertisers can highlight limited vehicle inventory without conditions.
• Advertisers must be prepared to substantiate all offers before publication.

10. How must disclosures appear in television advertisements according to Mississippi regulations?

• In an exaggerated, flashy style.
• In small, cramped font.
• Written in code or symbols.
• Clear and readable manner.

11. How should disclosures be presented on the internet in Mississippi?

• In a separate pop-up window.
• Only in the terms and conditions.
• Via email after the advertisement.
• On the same page of the vehicle advertised.

12. What must be disclosed regarding non-traditional payment methods in Mississippi advertisements?

• The non-traditional payment method must be disclosed in the same size font as shown price.
• The non-traditional payment method can be in smaller font than the shown price.
• The non-traditional payment method can be omitted from ads.
• The non-traditional payment method must be referenced in a footnote.

13. What is the standard for the first payment due on a credit sale or lease in Mississippi?

• 45 days
• 60 days
• 90 days
• 30 days

14. What must be stated if an advertisement defers the first payment beyond 45 days?

• The advertisement should provide a detailed car history report.
• The dealer must include additional fees in the price.
• The first month`s payment will be waived without any conditions.
• The fact that the purchaser`s own money or equity will be used in implementing such deferred payment plan.

15. What are the requirements for advertising rebates in Mississippi?

• Buyers are not entitled to any options regarding the rebate amounts.
• The seller determines how the rebate will be applied after the sale.
• Advertisements can state that rebates are automatic with every purchase.
• The buyer must be made aware that they have the option to determine how the dollar figure is to be used in the sale or lease.

16. What is the CARS rule`s purpose in sweepstakes marketing?

• To encourage more participants in sweepstakes.
• To simplify the advertising process for dealers.
• To prohibit misrepresentations about prize winning.
• To increase the number of prizes available.

17. What should be avoided to comply with the CARS rule in sweepstakes marketing?

• Overstating prizes
• Ambiguous terms
• Unclear entry rules
• Misleading language

18. What must be stated clearly in sweepstakes advertisements?

• Just the eligibility criteria and age restrictions.
• All inclusive costs and taxes of the prizes only.
• Only the prize details and winner announcements.
• The rules, eligibility criteria, prize details, and selection processes.

19. How should prize details be confirmed in sweepstakes marketing?

• Ensure prizes are awarded based on random selection only.
• Announce prizes without specifying availability or conditions.
• Confirm that all advertised prizes are available as described and that they are awarded in a manner that matches promotional messages.
• Provide vague descriptions of the prizes to create excitement.

20. What must be disclosed regarding conditions on receiving a prize in sweepstakes?

• List all previous winners of the prize.
• Clearly disclose any restrictions or conditions on receiving a prize.
• Provide a vague description of the prize.
• Include the dealer`s contact information only.

21. What should be avoided in sweepstakes marketing?

• Failing to mention entry restrictions
• Overhyping the prize than what exists
• Using vague terms about eligibility
• Misleading language and images

22. What are the record-keeping requirements for sweepstakes marketing under the CARS rule?

• Track only the number of participants without details of selection.
• Document prize values but ignore participant entry data.
• Maintain thorough records of all sweepstakes, including participant entries, how winners are selected, and prize distribution.
• Keep records of only the prize winners and their claims.

23. How long must materially different advertisements be kept according to the CARS rule?

• 24 months
• 12 months
• 18 months
• 36 months

24. What is the FTC`s role in regulating auto advertising?

• The FTC requires that all advertised prices include all non-governmental fees.
• The FTC allows dealers to hide fees in advertisements.
• The FTC restricts advertising to only cash prices without disclosures.
• The FTC mandates that advertisements cannot mention price at all.

25. What are the implications of not disclosing all fees in advertised prices?

• Consumers may be surprised by these fees and not disclosed until after the dealer and consumer agree on a sales price.
• Advertised prices may be lower, attracting more customers to dealerships.
• Dealers can raise prices later without facing legal issues.
• Fees can be ignored if the advertised price seems competitive.

26. What Ohio regulations apply to advertisements with exclusions or limitations?

• Ohio Rev. Code 100:6-15(C).
• Ohio Admin. Code 109:2-1-05(A).
• Ohio Admin. Code 109:4-3-02(A).
• Ohio Rev. Code 500:7-10(B).

27. Which Ohio rule governs the advertisement and sale of motor vehicles?

• Ohio Admin. Code 109:4-3-01
• Ohio Admin. Code 109:4-3-16(B)(5) and (B)(21)
• Ohio Admin. Code 109:4-3-10
• Ohio Admin. Code 109:4-3-20

28. What Oregon regulations require disclosure of extras and prohibit presumptive packing?

• OAR 137-040-0080(4)(c)
• OAR 137-020-0020(3)(j) and (m)
• OAR 137-030-0050(1)(b)
• OAR 137-010-0010(2)(a)

29. What is the purpose of the Assurance of Voluntary Compliance with Gunning & Associates Marketing?

• To promote a new lottery ticket without restrictions.
• To allow unregulated advertising of sweepstakes without oversight.
• To guarantee a minimum prize payout for all participants.
• To address deceptive marketing practices involving mailers that falsely represent or imply the recipient has won a prize.

30. Why are high jackpot amounts significant in lottery marketing?

• High jackpot amounts discourage engagement with lower odds of winning.
• High jackpot amounts attract more players, increasing ticket sales.
• Jackpot amounts have no impact on the number of tickets sold.
• Low jackpot amounts encourage increased participation among players.