Question 1

Hector Ramirez has decided he needs a new car so that he has reliable transportation to work.He is getting recommendations from his friends as to what might be a good car to purchase.He is also looking at the Consumer Reports magazine to determine what they recommend as a safe,low maintenance car and he has searched some web sites on the internet as well.What step in the purchasing process is Hector carrying out?

Accepted Answer

A)  problem identification
B)  information gathering
C)  evaluating alternatives
D)  determining the purchase price
E)  post purchase activitiesF) None of the above
G) A) and E)

Question 2

Which of the following information is required on food labels?

Accepted Answer

A)  open dating
B)  unit pricing
C)  generic name
D)  common product name
E)  brand nameF) A) and E)
G) None of the above

Question 3

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases.What amount would a person have to buy in order to save enough to cover the cost of the membership?

Accepted Answer

A)  $15
B)  $60
C)  $165
D)  $400
E)  $600F) C) and D)
G) B) and E)

Question 4

Private label products are those that:

Accepted Answer

A)  are sold as government surplus.
B)  require nutritional labeling information.
C)  provide freshness information on the package.
D)  are distributed by all national chain stores.
E)  are sold by one chain of stores.F) C) and D)
G) D) and E)

Question 5

Recently,Jim Dahl was on a bus tour in a mountainous area.The bus broke down forcing the group to stay overnight.Group members had to pay for their own hotel bills.Jim believes that the hotel cost for the group should be paid by the tour company.Which legal action would be most appropriate?

Accepted Answer

A)  small claims court
B)  mediation
C)  legal aid society
D)  arbitration
E)  class action suitF) B) and D)
G) B) and C)

Question 6

What type of warranty indicates that the seller has the right to sell a product?

Accepted Answer

A)  express warranty
B)  implied warranty
C)  warranty of title
D)  warranty of merchantability
E)  limited warrantyF) None of the above
G) All of the above

Question 7

A class action suit allows many people with the same complaint to take action as a group.

Accepted Answer

A) True 
 B)False

Question 8

Gina Raffetto's car broke down on the way to work and her mechanic has told her that the car cannot be fixed.Gina drives 30 miles one way to work each day.There is no reliable bus or train transportation that goes anywhere near her work.Gina decides she needs a car for reliable transportation to work.What step in the purchasing process is Gina carrying out?

Accepted Answer

A)  problem identification
B)  information gathering
C)  evaluating alternatives
D)  determining the purchase price
E)  post purchase activitiesF) All of the above
G) C) and D)

Question 9

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Accepted Answer

A)  Lemon Law
B)  Truth in Lending
C)  Truth in Saving
D)  Fair reporting
E)  Consumer Credit ActF) B) and C)
G) A) and B)

Question 10

Which organization specializes in the testing of products for electrical and fire safety?

Accepted Answer

A)  Consumers Union
B)  Better Business Bureau
C)  Consumer Product Safety Commission
D)  Underwriters Laboratories
E)  Federal Trade CommissionF) B) and C)
G) C) and D)

Question 11

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 the other answers are advantagesF) A) and C)
G) A) and B)

Question 12

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)  discount received for paying cash
C)  money spent by stores on advertising
D)  time spent comparing prices
E)  efforts by the government to prevent consumer fraudF) B) and D)
G) B) and C)

Question 13

Damian Walker just purchased a new vehicle.He is reading his owner's manual to know when he needs to take it in for its regular servicing at the dealer.He wants to make sure this car lasts a while.What step in the purchasing process is Damian carrying out?

Accepted Answer

A)  problem identification
B)  information gathering
C)  evaluating alternatives
D)  determining the purchase price
E)  post purchase activitiesF) C) and D)
G) B) and C)

Question 14

Describe four common consumer myths and explain the dangers of such erroneous beliefs.Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

Accepted Answer

Four common consumer myths include:

1. ...

Question 15

The process of resolving consumer complaints with the use of a third party whose recommendations are non-binding is called:

Accepted Answer

A)  mediation.
B)  arbitration.
C)  a class action suit.
D)  a product lawsuit.
E)  a small claims court hearing.F) A) and B)
G) None of the above

Question 16

Brad Hayden has a piece of paper that guarantees the conditions,under which he can return,replace,or repair an item that he has purchased.What is it he most likely has?

Accepted Answer

A)  coupon
B)  rebate
C)  warranty
D)  rain check
E)  class action suitF) All of the above
G) A) and B)

Question 17

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.F) C) and E)
G) A) and E)

Question 18

Sloane owes $2,600 on her car loan.According to Edmonds Used Car Prices,her car is valued at $1,950.The term used to refer to this situation is:

Accepted Answer

A)  residual value.
B)  pre-approval.
C)  capitalized cost.
D)  negative equity.
E)  money factor.F) D) and E)
G) All of the above

Question 19

____________ is considered a variable operating expense of an automobile.

Accepted Answer

A)  Depreciation
B)  Interest on auto loan
C)  Insurance
D)  Registration fee
E)  MaintenanceF) B) and E)
G) A) and C)

Question 20

The most reliable source of product information is likely to come from:

Accepted Answer

A)  an advertisement.
B)  salespeople in a store.
C)  friends and relatives.
D)  a food product ingredient label.
E)  a mail order catalog.F) A) and B)
G) B) and C)

Exam 8: Consumer Purchasing Strategies and Legal Protection

A class action suit allows many people with the same complaint to take action as a group.

Correct Answer
verified

What type of warranty indicates that the seller has the right to sell a product?

Correct Answer
verified

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

Correct Answer
verified

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases.What amount would a person have to buy in order to save enough to cover the cost of the membership?

Correct Answer
verified

The process of resolving consumer complaints with the use of a third party whose recommendations are non-binding is called:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Brad Hayden has a piece of paper that guarantees the conditions,under which he can return,replace,or repair an item that he has purchased.What is it he most likely has?

Correct Answer
verified

____________ is considered a variable operating expense of an automobile.

Correct Answer
verified

Describe four common consumer myths and explain the dangers of such erroneous beliefs.Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

Correct Answer
Answered by ExamLex AI
Four common consumer myths include:

1. ...
View Answer

The most reliable source of product information is likely to come from:

Correct Answer
verified

Sloane owes $2,600 on her car loan.According to Edmonds Used Car Prices,her car is valued at $1,950.The term used to refer to this situation is:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following information is required on food labels?

Correct Answer
verified

Damian Walker just purchased a new vehicle.He is reading his owner's manual to know when he needs to take it in for its regular servicing at the dealer.He wants to make sure this car lasts a while.What step in the purchasing process is Damian carrying out?

Correct Answer
verified

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Correct Answer
verified

Which organization specializes in the testing of products for electrical and fire safety?

Correct Answer
verified

Recently,Jim Dahl was on a bus tour in a mountainous area.The bus broke down forcing the group to stay overnight.Group members had to pay for their own hotel bills.Jim believes that the hotel cost for the group should be paid by the tour company.Which legal action would be most appropriate?

Correct Answer
verified

Private label products are those that:

Correct Answer
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

A class action suit allows many people with the same complaint to take action as a group.

Correct AnswerverifiedShow Answer

What type of warranty indicates that the seller has the right to sell a product?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases.What amount would a person have to buy in order to save enough to cover the cost of the membership?

Correct AnswerverifiedShow Answer

The process of resolving consumer complaints with the use of a third party whose recommendations are non-binding is called:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Brad Hayden has a piece of paper that guarantees the conditions,under which he can return,replace,or repair an item that he has purchased.What is it he most likely has?

Correct AnswerverifiedShow Answer

____________ is considered a variable operating expense of an automobile.

Correct AnswerverifiedShow Answer

Describe four common consumer myths and explain the dangers of such erroneous beliefs.Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

Correct AnswerAnswered by ExamLex AIFour common consumer myths include:1. ...View AnswerShow Answer

The most reliable source of product information is likely to come from:

Correct AnswerverifiedShow Answer

Sloane owes $2,600 on her car loan.According to Edmonds Used Car Prices,her car is valued at $1,950.The term used to refer to this situation is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following information is required on food labels?

Correct AnswerverifiedShow Answer

Damian Walker just purchased a new vehicle.He is reading his owner's manual to know when he needs to take it in for its regular servicing at the dealer.He wants to make sure this car lasts a while.What step in the purchasing process is Damian carrying out?

Correct AnswerverifiedShow Answer

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Correct AnswerverifiedShow Answer

Which organization specializes in the testing of products for electrical and fire safety?

Correct AnswerverifiedShow Answer

Recently,Jim Dahl was on a bus tour in a mountainous area.The bus broke down forcing the group to stay overnight.Group members had to pay for their own hotel bills.Jim believes that the hotel cost for the group should be paid by the tour company.Which legal action would be most appropriate?

Correct AnswerverifiedShow Answer

Private label products are those that:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Four common consumer myths include:

1. ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified