Question 1

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

Accepted Answer

A) True 
 B)False

Question 4

The most consistent quality is usually found with nationally known, brand-name products.

Accepted Answer

A) True 
 B)False

Question 5

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)  All of these are advantages. 
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)  All of these are advantages.

Question 6

Sally Nash has decided she needs a new car. After doing some research, she has settled on a midsized four door sedan. She likes the Honda Accord and is exploring the features she needs and wants on this car. She is also trying to decide whether she would be better off purchasing a new car, a used car, or leasing a car. She knows that if she purchases it new it would likely last her for many, many years. On the other hand a used car would be a lot cheaper. She is not sure a lease is for her because of the mileage requirements. What step in the purchasing process is Sally carrying out?

Accepted Answer

A)  Problem identification 
B)  Information gathering 
C)  Evaluating alternatives 
D)  Determining the purchase price 
E)  Post purchase activities 
A)  Problem identification 
B)  Information gathering 
C)  Evaluating alternatives 
D)  Determining the purchase price 
E)  Post purchase activities

Question 7

The price that is paid for a vehicle in a lease is called the:

Accepted Answer

A)  residual value. 
B)  unit price. 
C)  capitalized cost. 
D)  deductible. 
E)  premium. 
A)  residual value. 
B)  unit price. 
C)  capitalized cost. 
D)  deductible. 
E)  premium.

Question 8

____________ 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 action 
A)  Negotiation 
B)  Mediation 
C)  Arbitration 
D)  Servicing 
E)  Cooperative action

Question 9

A scam that involves malicious software or an e-mail attachment that plants 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. 
A)  a foreign scam. 
B)  a bogus campus card scheme. 
C)  pharming. 
D)  an internet pyramid scheme. 
E)  phishing.

Question 10

Open dating information provides consumers with information about product freshness.

Accepted Answer

A) True 
 B)False

Question 11

Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that the suggested retail price is $22,200 and that the dealer's invoice price is $19,980. It is time for him to go to a dealer and negotiate the price he will pay for his new car. What step in the purchasing process is Lorenzo carrying out?

Accepted Answer

A)  Problem identification 
B)  Information gathering 
C)  Evaluating alternatives 
D)  Determining the purchase price 
E)  Post purchase activities 
A)  Problem identification 
B)  Information gathering 
C)  Evaluating alternatives 
D)  Determining the purchase price 
E)  Post purchase activities

Question 12

Most cars bought from private parties 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 13

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

Question 14

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 15

The main purpose of the Edmund's Guide is to:

Accepted Answer

A)  monitor safety problems of existing vehicles. 
B)  provide price data. 
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 price data. 
C)  reduce sales of stolen vehicles. 
D)  list cars available for sale from government agencies. 
E)  provide VIN numbers for vehicles.

Question 16

The purpose of small claims court is to:

Accepted Answer

A)  regulate fair business activities. 
B)  provide hearings on proposed consumer protection laws. 
C)  allow consumers with similar complaints to take action as a group. 
D)  resolve minor consumer complaints. 
E)  assist low-income consumers who need legal help. 
A)  regulate fair business activities. 
B)  provide hearings on proposed consumer protection laws. 
C)  allow consumers with similar complaints to take action as a group. 
D)  resolve minor consumer complaints. 
E)  assist low-income consumers who need legal help.

Question 17

The main purpose of Consumers Union is to:

Accepted Answer

A)  evaluate 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)  evaluate 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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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.

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

The Sears Kenmore dishwasher is an example of a:

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

The most consistent quality is usually found with nationally known, brand-name products.

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

The price that is paid for a vehicle in a lease is called the:

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

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

Open dating information provides consumers with information about product freshness.

Most cars bought from private parties have:

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?

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

The main purpose of the Edmund's Guide is to:

The purpose of small claims court is to:

The main purpose of Consumers Union is to:

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

Arbitration differs from mediation in that arbitration:

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

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

The Sears Kenmore dishwasher is an example of a:

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

The most consistent quality is usually found with nationally known, brand-name products.

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

The price that is paid for a vehicle in a lease is called the:

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

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

Open dating information provides consumers with information about product freshness.

Most cars bought from private parties have:

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?

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

The main purpose of the Edmund's Guide is to:

The purpose of small claims court is to:

The main purpose of Consumers Union is to:

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

Arbitration differs from mediation in that arbitration:

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