Question 1

Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the product she just purchased that allows her to get part of her purchase price back.What is she most likely using?

Accepted Answer

A)  coupon
B)  rebate
C)  warranty
D)  indenture
E)  service contractF) B) and E)
G) All of the above

Question 2

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) A) and B)
G) B) and E)

Question 3

A cooperative is designed to:

Accepted Answer

A)  solve consumer complaints.
B)  test consumer products for quality.
C)  sell products or services to members at reduced prices.
D)  obtain brand-name items for less than wholesale cost.
E)  lobby for changes in consumer protection laws.F) None of the above
G) B) and D)

Question 4

A motor vehicle has annual depreciation of $2,000;oil changes cost $120,automobile insurance $500 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?

Accepted Answer

A)  $2,000
B)  $2,120
C)  $2,500
D)  $2,600
E)  $2,720F) A) and E)
G) B) and E)

Question 5

An implied warranty is usually in written form.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Distinguish between an implied warranty and an express warranty.

Accepted Answer

Answers will vary

Question 8

A disadvantage of leasing an automobile would be the:

Accepted Answer

A)  relatively high cost of the security deposit.
B)  the higher monthly payment as compared to a purchase.
C)  poor expense records for tax purposes.
D)  limited mileage in the lease agreement.
E)  responsibility for fuel expenses.F) A) and E)
G) B) and D)

Question 9

For a class action suit to be valid,it must:

Accepted Answer

A)  involve several people with the same problem.
B)  involve a national retail store.
C)  be a case that would not be handled by an attorney.
D)  involve low-income individuals.
E)  be a legal problem against a government agency.F) C) and D)
G) A) and B)

Question 10

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

Accepted Answer

A)  changing mortgage rates
B)  time zones
C)  hurricane season
D)  political elections
E)  crop failuresF) C) and E)
G) None of the above

Question 11

Which one of the following is not a common consumer myth?

Accepted Answer

A)  "An auto lease is like a rental;if I have problems with the car or paying,I can just bring it back."
B)  "Automotive service contracts can cover repairs not included in the manufacturer's warranty."
C)  "I can return my car within 3 days of purchase."
D)  "You can't repossess my car;it's on private property."
E)  "My creditors can't call me at work."F) C) and D)
G) B) and C) B

Question 12

Most consumer complaints are resolved by:

Accepted Answer

A)  legal action.
B)  assistance from a government agency.
C)  contacting a company's headquarters.
D)  returning to the place of purchase.
E)  obtaining help from an action linE.F) A) and B)
G) A) and C)

Question 13

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

Accepted Answer

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

Question 14

____________ are non-profit stores created by people in a neighborhood to serve their customers,who are also called members.Prices at this type of store are usually lower than at other retailers.

Accepted Answer

A)  Cooperatives
B)  Warehouse stores
C)  Factory outlets
D)  Catalog showrooms
E)  HypermarketsF) B) and E)
G) B) and C)

Question 15

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Accepted Answer

A)  $1,632.
B)  $1,752.
C)  $1,872.
D)  $1,992.
E)  $2,120.F) C) and D)
G) C) and E)

Question 16

Small claims courts:

Accepted Answer

A)  hear only class-action suits.
B)  are located in every state.
C)  have no minimum dollar limit on claims.
D)  require the use of an attorney.
E)  require that claims be in excess of $100,000.F) C) and E)
G) B) and E)

Question 17

The items produced for a single retail chain are commonly sold under a ____________ brand.

Accepted Answer

A)  store
B)  government
C)  regional
D)  chain
E)  nationalF) A) and D)
G) C) and D) A

Question 18

Impulse buying refers to:

Accepted Answer

A)  evaluating alternatives.
B)  gathering information.
C)  comparison shopping.
D)  selecting the least desirable alternative.
E)  unplanned purchasing.F) C) and E)
G) None of the above

Question 19

What are the main sources of consumer information?

Accepted Answer

The main sources of consumer information...

Question 20

Which of the following is usually the largest fixed expense for a new vehicle?

Accepted Answer

A)  insurance
B)  gasoline
C)  registration,license,and fees
D)  parking
E)  depreciationF) A) and D)
G) None of the above

Exam 8: Consumer Purchasing Strategies and Legal Protection

Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the product she just purchased that allows her to get part of her purchase price back.What is she most likely using?

Correct AnswerverifiedShow Answer

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

A cooperative is designed to:

Correct AnswerverifiedShow Answer

A motor vehicle has annual depreciation of $2,000;oil changes cost $120,automobile insurance $500 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?

Correct AnswerverifiedShow Answer

An implied warranty is usually in written form.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Distinguish between an implied warranty and an express warranty.

Correct AnswerverifiedAnswers will vary

A disadvantage of leasing an automobile would be the:

Correct AnswerverifiedShow Answer

For a class action suit to be valid,it must:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following is not a common consumer myth?

Correct AnswerverifiedB

Most consumer complaints are resolved by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____________ are non-profit stores created by people in a neighborhood to serve their customers,who are also called members.Prices at this type of store are usually lower than at other retailers.

Correct AnswerverifiedShow Answer

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Correct AnswerverifiedShow Answer

Small claims courts:

Correct AnswerverifiedShow Answer

The items produced for a single retail chain are commonly sold under a ____________ brand.

Correct AnswerverifiedA

Impulse buying refers to:

Correct AnswerverifiedShow Answer

What are the main sources of consumer information?

Correct AnswerAnswered by ExamLex AIThe main sources of consumer information...View AnswerShow Answer

Which of the following is usually the largest fixed expense for a new vehicle?

Correct AnswerverifiedShow Answer

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Answers will vary

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B

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A

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Correct Answer
Answered by ExamLex AI
The main sources of consumer information...
View Answer

Correct Answer
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