Question 1

Distinguish between an implied warranty and an express warranty.

Accepted Answer

Answers will vary

Question 2

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

Question 3

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." 
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." B

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

Question 5

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 payments 
A) down payment 
B) capitalized cost 
C) money factor 
D) residual value 
E) number of payments

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) limited mileage in the lease agreement. 
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) limited mileage in the lease agreement. 
E) responsibility for fuel expenses.

Question 7

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

Question 8

____________ 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) Hypermarkets 
A) Cooperatives 
B) Warehouse stores 
C) Factory outlets 
D) Catalog showrooms 
E) Hypermarkets

Question 9

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. 
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.

Question 10

Impulse buying refers to:

Accepted Answer

A) evaluating alternatives. 
B) gathering information. 
C) comparison shopping. 
D) selecting the least desirable alternative. 
E) unplanned purchasing. 
A) evaluating alternatives. 
B) gathering information. 
C) comparison shopping. 
D) selecting the least desirable alternative. 
E) unplanned purchasing.

Question 11

An implied warranty is usually in written form.

Accepted Answer

A) True 
 B)False

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. 
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.

Question 13

What are the main sources of consumer information?

Accepted Answer

The main sources of consumer information

Question 14

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 contract 
A) coupon 
B) rebate 
C) warranty 
D) indenture 
E) service contract

Question 15

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 16

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. 
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.

Question 17

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) depreciation 
A) insurance 
B) gasoline 
C) registration,license,and fees 
D) parking 
E) depreciation

Question 18

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 failures 
A) changing mortgage rates 
B) time zones 
C) hurricane season 
D) political elections 
E) crop failures

Question 19

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

Question 20

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. 
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.

Distinguish between an implied warranty and an express warranty.

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

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

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?

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.

A disadvantage of leasing an automobile would be the:

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

____________ 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.

Small claims courts:

Impulse buying refers to:

An implied warranty is usually in written form.

Most consumer complaints are resolved by:

What are the main sources of consumer information?

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?

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

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

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

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

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

A cooperative is designed to:

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

Exam 8: Consumer Purchasing Strategies and Legal Protection

Distinguish between an implied warranty and an express warranty.

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

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

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?

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.

A disadvantage of leasing an automobile would be the:

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

____________ 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.

Small claims courts:

Impulse buying refers to:

An implied warranty is usually in written form.

Most consumer complaints are resolved by:

What are the main sources of consumer information?

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?

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

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

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

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

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

A cooperative is designed to:

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