Question 1

For a situation to qualify as a class-action suit,it must:

Accepted Answer

A) involve several people who have suffered 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. 
A) involve several people who have suffered 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.

Question 2

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

Question 3

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. 
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.

Question 4

The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are nonbinding is called:

Accepted Answer

A) mediation. 
B) arbitration. 
C) a class action suit. 
D) a product lawsuit. 
E) a small claims court hearing. 
A) mediation. 
B) arbitration. 
C) a class action suit. 
D) a product lawsuit. 
E) a small claims court hearing.

Question 5

Proper vehicle maintenance is essential to extending the life of your car.Regular oil changes should occur every ________ miles,depending on recommendations for the vehicle.

Accepted Answer

A) 6,000 
B) 3,000 - 5,000 
C) 6,000 - 10,000 
D) 2,000 - 3,000 
E) 10,000 
A) 6,000 
B) 3,000 - 5,000 
C) 6,000 - 10,000 
D) 2,000 - 3,000 
E) 10,000

Question 6

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) additional costs for turning the car in early. 
E) responsibility for fuel expenses. 
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) additional costs for turning the car in early. 
E) responsibility for fuel expenses.

Question 7

The first phase in the buying process involves information gathering.

Accepted Answer

A) True 
 B)False

Question 8

A used car sold "as is" has:

Accepted Answer

A) a limited warranty. 
B) an implied warranty of merchantability 
C) a 30-day guarantee. 
D) a full warranty on parts but not labor. 
E) a 90-day guarantee. 
A) a limited warranty. 
B) an implied warranty of merchantability 
C) a 30-day guarantee. 
D) a full warranty on parts but not labor. 
E) a 90-day guarantee.

Question 9

Government agencies provide education programs and complaint hotlines to assist consumers in gathering information to make wise buying decisions.

Accepted Answer

A) True 
 B)False

Question 10

The main purpose of Consumers Union is to:

Accepted Answer

A) report the quality of products and services. 
B) reduce fire hazards of home appliances. 
C) handle consumer complaints from government workers. 
D) represent the government in consumer complaint hearings. 
E) provide environmental information on automobiles. 
A) report the quality of products and services. 
B) reduce fire hazards of home appliances. 
C) handle consumer complaints from government workers. 
D) represent the government in consumer complaint hearings. 
E) provide environmental information on automobiles.

Question 11

What are the common sources of consumer information to assist consumers in making wise buying decisions?

Accepted Answer

Answers will vary.Sources of information

Question 12

Brian Williams has a piece of paper that he gives to the cashier when he purchases a grocery item that saves him 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 note 
A) Coupon 
B) Rebate 
C) Warranty 
D) Receipt 
E) Promissory note

Question 13

Which of the following is true of automobile service contracts?

Accepted Answer

A) Automobile service contracts are warranties. 
B) Automobile service contracts can cover repairs not included in the manufacturer's warranty. 
C) Automobile service contracts are free. 
D) Automobile service contracts are always a wise financial decision. 
E) Automobile service contracts usually cost less than $200. 
A) Automobile service contracts are warranties. 
B) Automobile service contracts can cover repairs not included in the manufacturer's warranty. 
C) Automobile service contracts are free. 
D) Automobile service contracts are always a wise financial decision. 
E) Automobile service contracts usually cost less than $200.

Question 14

Sloane owes $2,450 on her car loan.According to Edmund's Used Car Prices,her car is valued at $1,850.The term used to refer to this situation is:

Accepted Answer

A) residual value. 
B) pre-approval. 
C) capitalized cost. 
D) upside-down. 
E) money factor. 
A) residual value. 
B) pre-approval. 
C) capitalized cost. 
D) upside-down. 
E) money factor.

Question 15

Which organization tests products for electrical and fire safety to assure items meet safety standards?

Accepted Answer

A) Consumers Watch 
B) Better Business Bureau 
C) Consumer Product Safety Commission 
D) Underwriters Laboratories 
E) Federal Trade Commission 
A) Consumers Watch 
B) Better Business Bureau 
C) Consumer Product Safety Commission 
D) Underwriters Laboratories 
E) Federal Trade Commission

Question 16

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk.The savings on these bulk purchases are passed on to the members in the form of lower food prices.Stephanie is most likely shopping in which type of store?

Accepted Answer

A) Department store 
B) Specialty store 
C) Discount store 
D) Convenience store 
E) Cooperative 
A) Department store 
B) Specialty store 
C) Discount store 
D) Convenience store 
E) Cooperative

Question 17

Which of the following is the largest fixed expense associated with a new automobile?

Accepted Answer

A) Insurance 
B) Gasoline 
C) Registration,license,and fees 
D) Parking 
E) Depreciation 
A) Insurance 
B) Gasoline 
C) Registration,license,and fees 
D) Parking 
E) Depreciation

Question 18

Which one of these statements best describes a criticism of automobile service contracts?

Accepted Answer

A) Repair companies provide poor service. 
B) Service contracts are included in the initial price of the product and thus are not optional. 
C) The government regulation of service contract companies is weak. 
D) The contracts do not always include everything you might expect. 
E) There are a limited number of authorized repair facilities. 
A) Repair companies provide poor service. 
B) Service contracts are included in the initial price of the product and thus are not optional. 
C) The government regulation of service contract companies is weak. 
D) The contracts do not always include everything you might expect. 
E) There are a limited number of authorized repair facilities.

Question 19

Which of the following would be an advantage of leasing a vehicle?

Accepted Answer

A) Automatic ownership interest in the car 
B) Unlimited mileage on the car 
C) No need to meet credit requirements 
D) Lease payments are likely to be lower than loan payments 
E) Additional costs to turn the car in early. 
A) Automatic ownership interest in the car 
B) Unlimited mileage on the car 
C) No need to meet credit requirements 
D) Lease payments are likely to be lower than loan payments 
E) Additional costs to turn the car in early.

Question 20

An automobile service contract can:

Accepted Answer

A) reduce operating costs of the vehicle. 
B) cover regular maintenance. 
C) provide automobile insurance at a discount. 
D) cover repairs not included in the manufacturer's warranty. 
E) help the buyer stay informed of government safety recalls. 
A) reduce operating costs of the vehicle. 
B) cover regular maintenance. 
C) provide automobile insurance at a discount. 
D) cover repairs not included in the manufacturer's warranty. 
E) help the buyer stay informed of government safety recalls.

For a situation to qualify as a class-action suit,it must:

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

An implied warranty of merchantability guarantees that:

The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are nonbinding is called:

Proper vehicle maintenance is essential to extending the life of your car.Regular oil changes should occur every ________ miles,depending on recommendations for the vehicle.

A disadvantage of leasing an automobile would be the:

The first phase in the buying process involves information gathering.

A used car sold "as is" has:

Government agencies provide education programs and complaint hotlines to assist consumers in gathering information to make wise buying decisions.

The main purpose of Consumers Union is to:

What are the common sources of consumer information to assist consumers in making wise buying decisions?

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

Which of the following is true of automobile service contracts?

Sloane owes $2,450 on her car loan.According to Edmund's Used Car Prices,her car is valued at $1,850.The term used to refer to this situation is:

Which organization tests products for electrical and fire safety to assure items meet safety standards?

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk.The savings on these bulk purchases are passed on to the members in the form of lower food prices.Stephanie is most likely shopping in which type of store?

Which of the following is the largest fixed expense associated with a new automobile?

Which one of these statements best describes a criticism of automobile service contracts?

Which of the following would be an advantage of leasing a vehicle?

An automobile service contract can:

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

For a situation to qualify as a class-action suit,it must:

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

An implied warranty of merchantability guarantees that:

The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are nonbinding is called:

Proper vehicle maintenance is essential to extending the life of your car.Regular oil changes should occur every ________ miles,depending on recommendations for the vehicle.

A disadvantage of leasing an automobile would be the:

The first phase in the buying process involves information gathering.

A used car sold "as is" has:

Government agencies provide education programs and complaint hotlines to assist consumers in gathering information to make wise buying decisions.

The main purpose of Consumers Union is to:

What are the common sources of consumer information to assist consumers in making wise buying decisions?

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

Which of the following is true of automobile service contracts?

Sloane owes $2,450 on her car loan.According to Edmund's Used Car Prices,her car is valued at $1,850.The term used to refer to this situation is:

Which organization tests products for electrical and fire safety to assure items meet safety standards?

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk.The savings on these bulk purchases are passed on to the members in the form of lower food prices.Stephanie is most likely shopping in which type of store?

Which of the following is the largest fixed expense associated with a new automobile?

Which one of these statements best describes a criticism of automobile service contracts?

Which of the following would be an advantage of leasing a vehicle?

An automobile service contract can:

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