NAB Regulatory Compliance & Legal Framework 3 — Questions and Answers
Question 1: Which section of the Communications Act prohibits broadcast stations from airing obscene material at any time and indecent material between 6 a.m. and 10 p.m.?
- Section 315
- Section 326
- Section 1464 (Correct answer)
- Section 312
Correct answer: Section 1464
18 U.S.C. Section 1464, enforced by the FCC, prohibits obscene broadcasts at any time and restricts indecent content to the safe harbor hours of 10 p.m.–6 a.m.
Question 2: Under FCC political broadcasting rules, the 'lowest unit charge' for candidates applies during what period?
- Year-round for all federal candidates
- 45 days before a primary and 60 days before a general election (Correct answer)
- 30 days before any election
- Only during the official campaign period declared by the candidate
Correct answer: 45 days before a primary and 60 days before a general election
The lowest unit charge rate applies to legally qualified candidates 45 days before a primary/caucus and 60 days before a general or special election.
Question 3: What does the FCC's 'main studio rule' historically require, and what was its status as of 2017?
- Stations must have a studio in their city of license; still in force
- Stations must co-locate transmitter and studio; eliminated in 2017
- Stations must maintain a staffed studio in or near their community of license; eliminated in 2017 (Correct answer)
- Stations must air local programming from their main studio; still in force
Correct answer: Stations must maintain a staffed studio in or near their community of license; eliminated in 2017
The FCC's main studio rule required a staffed studio in or near the community of license, but it was eliminated in 2017 to give licensees more operational flexibility.
Question 4: Which FCC rule prohibits a single entity from owning a broadcast television station and a daily newspaper in the same market?
- Local television ownership rule
- Newspaper/broadcast cross-ownership rule (Correct answer)
- Dual network rule
- National ownership cap rule
Correct answer: Newspaper/broadcast cross-ownership rule
The newspaper/broadcast cross-ownership rule historically prohibited common ownership of a broadcast station and a daily newspaper in the same market, though it has been subject to multiple FCC reviews.
Question 5: A station that willfully or repeatedly fails to operate as specified in its license may face what maximum penalty from the FCC?
- Warning letter only
- Fine up to $10,000
- Revocation of its license (Correct answer)
- Mandatory transfer of ownership
Correct answer: Revocation of its license
Under Section 312 of the Communications Act, the FCC can revoke a broadcast license for willful or repeated failure to operate according to license terms.
Question 6: What is 'payola' in broadcasting, and which federal law specifically addresses it?
- Airing ads without disclosure; governed by Section 315
- Paying for song airplay without disclosure; governed by 18 U.S.C. Section 317 (Correct answer)
- Trading airtime for goods; governed by Section 326
- Political ad rate manipulation; governed by Section 312
Correct answer: Paying for song airplay without disclosure; governed by 18 U.S.C. Section 317
Payola refers to undisclosed payment to air music, and 18 U.S.C. Section 317 (FCC sponsorship identification) and 47 U.S.C. Section 508 specifically criminalize and require disclosure of such payments.
Question 7: The FCC's Emergency Alert System (EAS) requires broadcasters to participate in which mandatory test?
- Monthly Required Monthly Tests (RMT) and Weekly Required Weekly Tests (RWT)
- Annual National Periodic Tests (NPT) and Weekly Required Weekly Tests (RWT) (Correct answer)
- Quarterly National Tests and Daily Local Tests
- Biannual Federal Tests and Monthly State Tests
Correct answer: Annual National Periodic Tests (NPT) and Weekly Required Weekly Tests (RWT)
EAS participants must conduct Required Weekly Tests (RWT) and participate in Required Monthly Tests (RMT), plus periodic National Periodic Tests (NPT) conducted by FEMA and the FCC.
Which section of the Communications Act prohibits broadcast stations from airing obscene material at any time and indecent material between 6 a.m. and 10 p.m.?