Question 1

Steve Franklin recently purchased a stereo system. After a few weeks it overheated, causing a small fire and some minor damage. What actions would you recommend to Steve to resolve his consumer complaint? What legal actions might Steve consider for this situation?

Accepted Answer

First and foremost, Steve should contact...

Question 2

What are the main sources of consumer information?

Accepted Answer

The main sources of consumer information...

Question 3

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) A) and B)
G) C) and E)

Question 4

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 C)
G) C) and E)

Question 5

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) C) and D)
G) A) and B)

Question 6

Cooperatives are most commonly organized to sell:

Accepted Answer

A)   service contracts.
B)   furniture.
C)   auto repair service.
D)   food.
E)   information processing service.F) D) and E)
G) A) and D)

Question 7

Explain the difference between arbitration and mediation.

Accepted Answer

The answer of Explain the difference between arbitration and mediation....

Question 8

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.F) D) and E)
G) B) and C)

Question 9

The first phase of the consumer buying process is:

Accepted Answer

A)   comparing alternatives.
B)   evaluating alternatives.
C)   identifying the problem.
D)   researching alternatives.
E)   selecting the buying location.F) A) and E)
G) D) and E)

Question 10

A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs.

Accepted Answer

A) True 
 B)False

Question 11

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 warrantyF) B) and E)
G) C) and D)

Question 12

Federal laws limit the amount of fraudulent charges that a consumer is liable for in the case of a lost or stolen card to:

Accepted Answer

A)   $50.
B)   $100.
C)   $150.
D)   $250.
E)   $500.F) A) and D)
G) A) and B)

Question 13

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 contractF) B) and C)
G) None of the above

Question 14

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)   DepreciationF) A) and E)
G) A) and D)

Question 15

A high tech scam that uses spam or pop-up messages to deceive you into revealing your credit card number, bank account information, social security number, passwords, or other sensitive information is called:

Accepted Answer

A)   pharming.
B)   phishing.
C)   Internet pyramid scheme.
D)   bogus "campus card" scheme.
E)   foreign scam.F) A) and B)
G) All of the above

Question 16

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 paymentsF) A) and E)
G) All of the above

Question 17

Federal Trade Commission regulations require that:

Accepted Answer

A)   all used cars be sold with a warranty.
B)   used car buyers be informed of whether or not the vehicle comes with a warranty.
C)   used cars with over 100,000 miles be sold only by the individual owner, not by a dealer.
D)   major repairs must be made on all used cars prior to being offered for sale.
E)   the seller of a defective used car pay half the cost of the required repairs.F) B) and E)
G) A) and E)

Question 18

Open dating provides information on:

Accepted Answer

A)   freshness.
B)   pricing.
C)   nutrition.
D)   common product use.
E)   government inspection.F) C) and D)
G) D) and E)

Question 19

Greg Rossman likes to play golf. This would be an example of a(n)  _________ factor that influences his purchasing decision.

Accepted Answer

A)   economic
B)   social
C)   personal
D)   global
E)   financialF) B) and C)
G) All of the above

Question 20

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) B) and E)
G) A) and E)

Exam 8: Consumer Purchasing Strategies and Legal Protection

A disadvantage of leasing an automobile would be the:

Correct AnswerverifiedShow Answer

Steve Franklin recently purchased a stereo system. After a few weeks it overheated, causing a small fire and some minor damage. What actions would you recommend to Steve to resolve his consumer complaint? What legal actions might Steve consider for this situation?

Correct AnswerAnswered by ExamLex AIFirst and foremost, Steve should contact...View AnswerShow Answer

What are the main sources of consumer information?

Correct AnswerAnswered by ExamLex AIThe main sources of consumer information...View AnswerShow Answer

Cooperatives are most commonly organized to sell:

Correct AnswerverifiedShow Answer

The first phase of the consumer buying process is:

Correct AnswerverifiedShow Answer

Explain the difference between arbitration and mediation.

Correct AnswerverifiedShow Answer

Greg Rossman likes to play golf. This would be an example of a(n) _________ factor that influences his purchasing decision.

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

Federal Trade Commission regulations require that:

Correct AnswerverifiedShow Answer

A high tech scam that uses spam or pop-up messages to deceive you into revealing your credit card number, bank account information, social security number, passwords, or other sensitive information is called:

Correct AnswerverifiedShow Answer

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?

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

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?

Correct AnswerverifiedShow Answer

Federal laws limit the amount of fraudulent charges that a consumer is liable for in the case of a lost or stolen card to:

Correct AnswerverifiedShow Answer

A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs.

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

Open dating provides information on:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
First and foremost, Steve should contact...
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The main sources of consumer information...
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