Question 1

Which of the following is least likely to assist you in timing purchases to help you obtain bargains?

Accepted Answer

A)  Changing economic conditions
B)  Time zones
C)  Weather reports
D)  Political conflicts around the world
E)  Crop failuresF) B) and C)
G) A) and C)

Question 2

Federal Trade Commission regulations require that:

Accepted Answer

A)  all used cars be sold with a warranty.
B)  used car buyers be informed of whether or not the vehicle comes with a warranty.
C)  used cars with over 100,000 miles be sold only by the individual owner, not by a dealer.
D)  major repairs must be made on all used cars prior to being offered for sale.
E)  the seller of a defective used car pay half the cost of the required repairs.F) All of the above
G) A) and D)

Question 3

____________ is the settlement of a difference by a third party whose decision is legally binding.

Accepted Answer

A)  Negotiation
B)  Mediation
C)  Arbitration
D)  Servicing
E)  Cooperative actionF) B) and C)
G) C) and D)

Question 4

The purpose of a service contract is to:

Accepted Answer

A)  prevent legal action due to a defective product.
B)  protect a product owner from the high costs of certain repairs.
C)  reduce the chance of needing repairs.
D)  obtain regular maintenance on a product.
E)  have legal assistance for consumer complaints.F) A) and E)
G) A) and D)

Question 5

When buying an automobile,the best warranties are usually offered by a:

Accepted Answer

A)  auction company.
B)  private party.
C)  used car dealer.
D)  fleet sales company.
E)  new car dealer.F) All of the above
G) A) and B)

Question 6

An implied warranty of merchantability guarantees that:

Accepted Answer

A)  The buyer must pay for all warranty repair costs.
B)  The manufacturer must cover all warranty repair costs.
C)  A toaster must toast bread.
D)  A used car must come with a radio.
E)  A new car must come with a MP3 player.F) A) and B)
G) A) and D)

Question 7

Which of the following statements about a legal aid society is not true?

Accepted Answer

A)  It provides legal assistance to people who cannot afford their own attorney.
B)  It is part of a network of community law offices.
C)  It provides legal assistance at minimal cost or without charge.
D)  It is a branch of the American Bar Association.
E)  It is a publicly supported organization.F) A) and E)
G) B) and C)

Question 8

Paul Spoon has noticed that interest rates have risen in recent months.He is worried that this may make it more difficult for him to finance the purchase of a car.This would be an example of a ________ factor that influences his purchasing decision.

Accepted Answer

A)  economic
B)  social
C)  personal
D)  global
E)  careerF) B) and D)
G) B) and C)

Question 9

Which of the following is a social factor that would influence a consumer's buying decision?

Accepted Answer

A)  hobbies
B)  inflation
C)  tax rates
D)  gender
E)  marital statusF) B) and E)
G) All of the above

Question 10

Emily is trying to decide whether to lease or buy a car.Which one of the following is not a factor necessary in making the comparison?

Accepted Answer

A)  Down payment
B)  Monthly lease payments
C)  Gasoline costs
D)  Estimated value of vehicle at end of lease period
E)  Mileage overage chargesF) C) and D)
G) B) and E)

Question 11

Arbitration differs from mediation in that arbitration:

Accepted Answer

A)  involves government officials.
B)  requires the use of a lawyer.
C)  is only available in certain states.
D)  allows compromise through negotiation.
E)  is legally binding.F) A) and B)
G) A) and C)

Question 12

The purpose of the invoice price is to inform customers of the:

Accepted Answer

A)  sales tax on the vehicle.
B)  suggested retail price.
C)  sticker price.
D)  charge for optional extras.
E)  dealer's cost.F) A) and D)
G) A) and C)

Question 13

Service contracts are usually free and included in the cost of appliances and other high-priced items.

Accepted Answer

A) True 
 B)False

Question 14

The first phase of the consumer buying process involves:

Accepted Answer

A)  comparing alternatives.
B)  evaluating alternatives.
C)  identifying the problem.
D)  researching alternatives.
E)  selecting the buying location.F) All of the above
G) None of the above

Question 15

A 32-ounce package selling for $1.60 would have a unit price of:

Accepted Answer

A)  $1.60 per ounce.
B)  $2.00 per pound.
C)  $0.05 per ounce.
D)  $20.00 per quart.
E)  $51.20 per ounce.F) B) and C)
G) B) and E)

Question 16

Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get a dollar off the cost of that item.What is he most likely using?

Accepted Answer

A)  Coupon
B)  Rebate
C)  Warranty
D)  Receipt
E)  Promissory noteF) A) and D)
G) A) and B)

Question 17

Consistent quality is usually found with national-brand products,excluding:

Accepted Answer

A)  Green Giant
B)  Nabisco
C)  Kraft
D)  Apple
E)  Great ValueF) B) and E)
G) None of the above

Question 18

A scam that involves malicious software or an e-mail attachment that places a virus or worm in the user's computer or in a server that directs traffic on the Internet is called:

Accepted Answer

A)  a foreign scam.
B)  a bogus campus card scheme.
C)  pharming.
D)  an internet pyramid scheme.
E)  phishing.F) B) and D)
G) A) and E)

Question 19

Mike Jacobs is planning to lease an automobile.In an effort to minimize the price of the vehicle being leased,Mike should compare the ____________ at different leasing companies.

Accepted Answer

A)  down payment
B)  capitalized cost
C)  money factor
D)  residual value
E)  number of paymentsF) All of the above
G) A) and B)

Question 20

A class-action suit allows a legal action to be taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.

Accepted Answer

A) True 
 B)False

Exam 8: Consumer Purchasing Strategies and Legal Protection

A class-action suit allows a legal action to be taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.

Correct AnswerverifiedShow Answer

The purpose of the invoice price is to inform customers of the:

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Mike Jacobs is planning to lease an automobile.In an effort to minimize the price of the vehicle being leased,Mike should compare the ____________ at different leasing companies.

Correct AnswerverifiedShow Answer

An implied warranty of merchantability guarantees that:

Correct AnswerverifiedShow Answer

When buying an automobile,the best warranties are usually offered by a:

Correct AnswerverifiedShow Answer

Consistent quality is usually found with national-brand products,excluding:

Correct AnswerverifiedShow Answer

Service contracts are usually free and included in the cost of appliances and other high-priced items.

Correct AnswerverifiedShow Answer

Which of the following is least likely to assist you in timing purchases to help you obtain bargains?

Correct AnswerverifiedShow Answer

Arbitration differs from mediation in that arbitration:

Correct AnswerverifiedShow Answer

Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get a dollar off the cost of that item.What is he most likely using?

Correct AnswerverifiedShow Answer

Which of the following statements about a legal aid society is not true?

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The purpose of a service contract is to:

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A 32-ounce package selling for $1.60 would have a unit price of:

Correct AnswerverifiedShow Answer

The first phase of the consumer buying process involves:

Correct AnswerverifiedShow Answer

____________ is the settlement of a difference by a third party whose decision is legally binding.

Correct AnswerverifiedShow Answer

Which of the following is a social factor that would influence a consumer's buying decision?

Correct AnswerverifiedShow Answer

Federal Trade Commission regulations require that:

Correct AnswerverifiedShow Answer

Emily is trying to decide whether to lease or buy a car.Which one of the following is not a factor necessary in making the comparison?

Correct AnswerverifiedShow Answer

A scam that involves malicious software or an e-mail attachment that places a virus or worm in the user's computer or in a server that directs traffic on the Internet is called:

Correct AnswerverifiedShow Answer

Paul Spoon has noticed that interest rates have risen in recent months.He is worried that this may make it more difficult for him to finance the purchase of a car.This would be an example of a ________ factor that influences his purchasing decision.

Correct AnswerverifiedShow Answer

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