Unformatted text preview: ertising. Name and briefly describe three of these federal laws.
Exhibit 4.1 describes the primary U.S. laws that affect marketing, and students can discuss any
three of them. The Sherman Act (1890) makes trusts and conspiracies in restraint illegal and
makes monopolies and attempt to monopolize a misdemeanor. The Clayton Act (1914) outlaws
price discrimination and tying contracts. The Federal Trade Commission Act (1914) created the
Federal Trade Commission (FTC) to deal with antitrust matters and outlaws unfair methods of
competition. The Robinson-Patman Act (1936) prohibits charging different prices to different
competing buyers and requires sellers to make supplementary services or allowances available to
all purchasers on a proportionately equal basis. The Wheeler-Lea Amendments to the FTC Act
(1938) broadens FTC powers and outlaws false and deceptive advertising. The Lanham Act
(1946) establishes protection for trademarks. The Celler-Kefauver Antimerger Act (1950)
strengthens the Clayton Act to prevent corporate acquisitions that reduce competition. The HartScott-Rodino Act (1976) requires large companies to notify the government of their intent to
KEY: CB&E Model Strategy OBJ: 04-7 TOP: AACSB MSC: BLOOMS Synthesis 11. What is the CPSC? How does it affect marketing?
The Consumer Product Safety Commission (CPSC) is a federal regulatory agency that directly
affects the marketing environment. The sole purpose of the CPSC is to protect the health and
safety of consumers in and around their homes. It has the power to prescribe mandatory safety
standards for almost all products consumers use. The CPSC has the power to ban dangerous
products from the marketplace and levy heavy fines on offending firms. Marketers should be
aware of the health and safety needs of consumers when making and distributing products. PTS: 1
KEY: CB&E Model Strategy OBJ: 04-7 TOP: AACSB MSC: BLOOMS Synthesis 12. Describe the competitive environment for a locally owned coffeehouse in your college
The competitive environment encompasses the number of competitors a firm must face, the
relative size of the competitors, and the degree of interdependence within the industry. To answer
this question, students will need to take a broad look at the competition for the consumers’ coffee
dollars, including but not limited to fast-food franchises, vending machines, and convenience
stores. The competition is large but is fragmented into many small units that all operate
independently from each other while still trying to attract similar target markets.
KEY: CB&E Model Strategy Chapter 5—Developing a Global Vision OBJ: 04-8 TOP: AACSB MSC: BLOOMS Synthesis TRUE/FALSE
1. Having a global vision means that management recognizes and reacts to international marketing
opportunities, uses effective marketing strategies, and is aware of threats from foreign
competitors in all...
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- Fall '13
- Marketing, AACSB Reflective, CB&E Model Strategy, CB&E Model