Question 1

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. 
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. E

Question 2

Distinguish between an implied warranty and an express warranty.

Accepted Answer

An express warranty is usually in written form and can be either a full warranty or a limited warranty.An implied warranty covers a product's intended use or other basic understandings that are not in writing.Two implied warranties are an implied warranty of title and an implied warranty of merchantability.

Question 3

Which type of government agency provides educational programs to assist consumers with buying decisions?

Accepted Answer

A) Federal 
B) Consumers Union 
C) Underwriters Laboratories 
D) Consumer Reports 
E) National Highway Traffic Safety Administration 
A) Federal 
B) Consumers Union 
C) Underwriters Laboratories 
D) Consumer Reports 
E) National Highway Traffic Safety Administration A

Question 4

The Sears Kenmore dishwasher is an example of a:

Accepted Answer

A) national brand. 
B) store brand. 
C) generic brand. 
D) local brand. 
E) regional brand. 
A) national brand. 
B) store brand. 
C) generic brand. 
D) local brand. 
E) regional brand.

Question 5

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) Residual value 
E) Mileage overage charges 
A) Down payment 
B) Monthly lease payments 
C) Gasoline costs 
D) Residual value 
E) Mileage overage charges

Question 6

The main purpose of the Edmund's Used Car Prices is to:

Accepted Answer

A) monitor safety problems of existing vehicles. 
B) provide current used-car prices. 
C) reduce sales of stolen vehicles. 
D) list cars available for sale from government agencies. 
E) provide VIN numbers for vehicles. 
A) monitor safety problems of existing vehicles. 
B) provide current used-car prices. 
C) reduce sales of stolen vehicles. 
D) list cars available for sale from government agencies. 
E) provide VIN numbers for vehicles.

Question 7

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases.An implied warranty exists as a result of:

Accepted Answer

A) a stated intent of the seller. 
B) actions by consumers. 
C) the intended use of a product. 
D) rulings of federal consumer agencies. 
E) a written statement from the manufacturer. 
A) a stated intent of the seller. 
B) actions by consumers. 
C) the intended use of a product. 
D) rulings of federal consumer agencies. 
E) a written statement from the manufacturer.

Question 8

Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the product that she just purchased.It 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 contract 
A) Coupon 
B) Rebate 
C) Warranty 
D) Indenture 
E) Service contract

Question 9

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 original sales location. 
E) obtaining help from an action line. 
A) legal action. 
B) assistance from a government agency. 
C) contacting a company's headquarters. 
D) returning to the original sales location. 
E) obtaining help from an action line.

Question 10

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. 
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.

Question 11

An example of a financial services cooperative is a:

Accepted Answer

A) credit union. 
B) sports store. 
C) grocery store. 
D) pawnshop. 
E) payday loan company. 
A) credit union. 
B) sports store. 
C) grocery store. 
D) pawnshop. 
E) payday loan company.

Question 12

An example of an economic factor that influences buying decisions would be:

Accepted Answer

A) family size. 
B) inflation. 
C) advertising. 
D) hobbies. 
E) lifestyle. 
A) family size. 
B) inflation. 
C) advertising. 
D) hobbies. 
E) lifestyle.

Question 13

Advertising is a type of consumer information commonly provided by business organizations.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

Accepted Answer

A) Enjoyment derived from owning an item 
B) Taxes paid on purchases 
C) Money spent by stores on advertising 
D) Time and effort spent on comparison shopping 
E) Efforts by the government to prevent consumer fraud 
A) Enjoyment derived from owning an item 
B) Taxes paid on purchases 
C) Money spent by stores on advertising 
D) Time and effort spent on comparison shopping 
E) Efforts by the government to prevent consumer fraud

Question 15

Most used cars bought from private owners have:

Accepted Answer

A) no implied warranties. 
B) a 30-day return privilege. 
C) a limited warranty. 
D) no express warranty. 
E) a government-supported repair guarantee. 
A) no implied warranties. 
B) a 30-day return privilege. 
C) a limited warranty. 
D) no express warranty. 
E) a government-supported repair guarantee.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Federal law requires food labels to contain:

Accepted Answer

A) advertising phrases 
B) the company website 
C) unit price information 
D) ingredients and nutrients 
E) None of these 
A) advertising phrases 
B) the company website 
C) unit price information 
D) ingredients and nutrients 
E) None of these

Question 18

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Accepted Answer

A) Limited warranty 
B) Full warranty 
C) Implied warranty 
D) Warranty of title 
E) Express warranty 
A) Limited warranty 
B) Full warranty 
C) Implied warranty 
D) Warranty of title 
E) Express warranty

Question 19

Which type of purchasing strategy involves comparing unit prices?

Accepted Answer

A) Timing purchases 
B) Price comparison 
C) Label information 
D) Brand comparison 
E) Store selection 
A) Timing purchases 
B) Price comparison 
C) Label information 
D) Brand comparison 
E) Store selection

Question 20

The items produced for a specific retail chain of stores are commonly sold under a ________ brand.

Accepted Answer

A) store 
B) government 
C) regional 
D) local 
E) national 
A) store 
B) government 
C) regional 
D) local 
E) national

Arbitration differs from mediation in that arbitration:

Distinguish between an implied warranty and an express warranty.

Which type of government agency provides educational programs to assist consumers with buying decisions?

The Sears Kenmore dishwasher is an example of a:

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?

The main purpose of the Edmund's Used Car Prices is to:

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases.An implied warranty exists as a result of:

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

Most consumer complaints are resolved by:

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

An example of a financial services cooperative is a:

An example of an economic factor that influences buying decisions would be:

Advertising is a type of consumer information commonly provided by business organizations.

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

Most used cars bought from private owners have:

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

Federal law requires food labels to contain:

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Which type of purchasing strategy involves comparing unit prices?

The items produced for a specific retail chain of stores are commonly sold under a ________ brand.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 8: Consumer Purchasing Strategies and Legal Protection

Arbitration differs from mediation in that arbitration:

Distinguish between an implied warranty and an express warranty.

Which type of government agency provides educational programs to assist consumers with buying decisions?

The Sears Kenmore dishwasher is an example of a:

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?

The main purpose of the Edmund's Used Car Prices is to:

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases.An implied warranty exists as a result of:

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

Most consumer complaints are resolved by:

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

An example of a financial services cooperative is a:

An example of an economic factor that influences buying decisions would be:

Advertising is a type of consumer information commonly provided by business organizations.

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

Most used cars bought from private owners have:

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

Federal law requires food labels to contain:

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Which type of purchasing strategy involves comparing unit prices?

The items produced for a specific retail chain of stores are commonly sold under a ________ brand.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters