45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 5 Unit 1 Exam

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Question #1
Which of these is a TRUE statement regarding truth in advertising violation penalties?
A.   A cease-and-desist order from the Federal Trade Commission related to deceptive advertising becomes effective 30 days after issuance.
B.   The severity of the civil penalty for violating truth in advertising laws is based on the number of consumers affected by the deceptive ad.
C.   The Federal Trade Commission typically imposes jail time for truth in advertising violations.
D.   The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.
Question #2
You’ve started creating your own advertising. Where can you look for reliable information?
A.   Your broker friend's website.
B.   Copy other peoples' advertisements
C.   Brokerage policy manual
D.   Google it
Question #3
What types of advertising fall under California Department of Real Estate's rules and regulations?
A.   Advertising by any means
B.   Only radio advertising
C.   Only TV advertising
D.   Only print advertising
Question #4
Evan has his home and cell number on the Do Not Call Registry. He received an unwanted solicitation call from a new real estate licensee in the city. He told the licensee his number is on the Do Not Call Registry and that he does not wish to do business with the licensee. A few days later, he got another unwanted call from the licensee. What federal act is the licensee possibly violating?
A.   CAN-SPAM Act of 2003
B.   Anti-Telemarketer Act of 2000
C.   Do Not Call Implementation Act of 2003
D.   Junk Fax Prevention Act of 2005
Question #5
What does the FTC consider to be a deceptive ad?
A.   Any ad with a claim that's clearly not true
B.   Any ad or business practice that causes or is likely to cause injury
C.   Any ad that makes a health claim
D.   Any ad likely to mislead consumers acting reasonably under the circumstances
Question #6
What's it called when you contact the public with unsolicited offers via a multitude of types of communication and in high frequency, even with buyer permission?
A.   Fraud
B.   Harassment
C.   Misrepresentation
D.   Panic selling
Question #7
The Federal Trade Commission is concerned with all ad claims but is most likely to be most concerned with ______.
A.   Ads making exaggerated claims most reasonable consumers wouldn't believe
B.   Any ad that is demonstrably false
C.   Ads for products that don't offer any specific value to consumers
D.   Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate
Question #8
Krening Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is NOT true?
A.   If Krening violates the cease-and-desist order, the firm may face penalties up to $43,792 for each day a deceptive ad runs.
B.   The firm may face civil penalties ranging from the thousands to millions of dollars, depending on the infraction.
C.   Krening's broker may face jail time.
D.   Krening may be required to run corrective advertising.

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