Question 1

A 32-ounce package selling for $1.60 would have a unit price of:

Accepted Answer

A)   $1.60.
B)   $2.00 a pound.
C)   5′ an ounce.
D)   80′ a quart.
E)   12′ an ounce.F) A) and B)
G) A) and C)

Question 2

Regular vehicle maintenance is essential to extending the life of your car. Engine oil should be changed approximately every ____ months or _______ miles.

Accepted Answer

A)   3; 6,000
B)   3; 3,000
C)   6; 6,000
D)   6; 10,000
E)   12; 10,000F) B) and C)
G) B) and D) B

Question 3

The first phase in the buying process involves information gathering.

Accepted Answer

A) True 
 B)False

Question 4

Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.

Accepted Answer

A) True 
 B)False

Question 5

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."F) A) and E)
G) B) and D)

Question 6

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) A) and C)

Question 7

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

Accepted Answer

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

Question 8

Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:

Accepted Answer

A)   recommend reputable companies in an area.
B)   resolve consumer complaints.
C)   lobby for improved consumer protection laws.
D)   evaluate products and services for quality.
E)   represent business in government hearings.F) A) and D)
G) None of the above

Question 9

What legal actions are available when assistance is needed to resolve a consumer problem?

Accepted Answer

When a consumer encounters a problem with a product or service, there are several legal actions they can take to seek resolution. The specific steps may vary depending on the jurisdiction and the nature of the issue, but generally, the following options are available:

1. **Contact the Business Directly**: The first step is often to contact the seller or service provider to report the problem and seek a resolution. Many issues can be resolved at this stage through a refund, repair, replacement, or other remedial action.

2. **Use Company's Dispute Resolution Process**: If the initial contact does not resolve the issue, the consumer should check if the company has a formal dispute resolution process, such as mediation or arbitration, and follow those procedures.

3. **Consumer Protection Agencies**: If direct contact with the business is unsuccessful, consumers can reach out to local or national consumer protection agencies. These agencies can provide guidance, mediate disputes, and sometimes take legal action on behalf of consumers.

4. **Small Claims Court**: For relatively minor issues (usually involving a limited amount of money), consumers can file a claim in small claims court. This is a simplified legal process that allows individuals to pursue claims without the need for an attorney.

5. **Civil Lawsuit**: For more significant issues, consumers may consider filing a civil lawsuit against the business. This is a more formal legal process and may require the assistance of a lawyer.

6. **Class Action Lawsuits**: If a problem affects a large group of consumers in a similar way, it may be possible to join or initiate a class action lawsuit. This allows individuals to pool their resources and claims together.

7. **Alternative Dispute Resolution (ADR)**: This includes methods like mediation and arbitration, where a neutral third party helps to facilitate a resolution between the consumer and the business. ADR can be faster and less expensive than going to court.

8. **Regulatory Complaints**: If the issue involves a regulated industry (like telecommunications, finance, or insurance), consumers can file a complaint with the relevant regulatory body, which has the authority to investigate and enforce regulations.

9. **Legal Advice**: Consumers can seek advice from a consumer rights attorney or legal aid organization to understand their rights and the best course of action. Legal professionals can provide guidance on the viability of a claim and the legal process.

10. **Online Dispute Resolution Platforms**: Some online platforms offer dispute resolution services, especially for e-commerce transactions. These platforms can facilitate negotiations and settlements between consumers and businesses.

It's important for consumers to document all communications and keep records of transactions, warranties, contracts, and any other relevant information that can support their case. Additionally, consumers should be aware of the statute of limitations for filing claims, which varies by jurisdiction and the type of claim.

Question 10

Paul Spoon has noticed that interest rates have risen in recent months. He is worried that this may make it more difficult for him to finance the purchase of a car. 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)   careerF) None of the above
G) B) and E)

Question 11

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. Members can save a considerable amount on the groceries they purchase in the store. 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)   CooperativeF) A) and B)
G) None of the above

Question 12

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 failuresF) B) and D)
G) D) and E) B

Question 13

Which one of these statements best describes the major criticism of 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 are expensive and contain a lot of exclusions.
E)   There are a limited number of authorized repair facilities.F) C) and E)
G) A) and B)

Question 14

A vehicle sold "as is" has:

Accepted Answer

A)   a limited warranty.
B)   no express warranty.
C)   a 30-day guarantee.
D)   a full warranty on parts but not labor.
E)   a 90-day guarantee.F) All of the above
G) A) and C)

Question 15

Near-field communications (NFC) allows consumers to make purchases by waving their smartphones in front of a sensor when paying.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Impulse buying refers to:

Accepted Answer

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

Question 18

Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get 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 noteF) A) and E)
G) A) and C)

Question 19

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)   nationalF) B) and E)
G) All of the above

Question 20

Advertising is a type of consumer information commonly provided by:

Accepted Answer

A)   government agencies.
B)   personal contacts.
C)   independent testing organizations.
D)   business organizations.
E)   All of these.F) C) and D)
G) B) and D)

Exam 8: Consumer Purchasing Strategies and Legal Protection

A 32-ounce package selling for $1.60 would have a unit price of:

Correct Answer
verified

Regular vehicle maintenance is essential to extending the life of your car. Engine oil should be changed approximately every months or ___ miles.

Correct Answer
verified
B

The first phase in the buying process involves information gathering.

Correct Answer
verified

Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.

Correct Answer
verified

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

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

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

Correct Answer
verified

Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:

Correct Answer
verified

What legal actions are available when assistance is needed to resolve a consumer problem?

Paul Spoon has noticed that interest rates have risen in recent months. He is worried that this may make it more difficult for him to finance the purchase of a car. This would be an example of a(n) ________ factor that influences his purchasing decision.

Correct Answer
verified

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. Members can save a considerable amount on the groceries they purchase in the store. Stephanie is most likely shopping in which type of store?

Correct Answer
verified

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

Correct Answer
verified
B

Which one of these statements best describes the major criticism of service contracts?

Correct Answer
verified

A vehicle sold "as is" has:

Correct Answer
verified

Near-field communications (NFC) allows consumers to make purchases by waving their smartphones in front of a sensor when paying.

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

Impulse buying refers to:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Advertising is a type of consumer information commonly provided by:

Correct Answer
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

A 32-ounce package selling for $1.60 would have a unit price of:

Correct AnswerverifiedShow Answer

Regular vehicle maintenance is essential to extending the life of your car. Engine oil should be changed approximately every ____ months or _______ miles.

Correct AnswerverifiedB

The first phase in the buying process involves information gathering.

Correct AnswerverifiedShow Answer

Unit pricing uses a standard unit of measurement to compare prices of packages of different sizes.

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:

Correct AnswerverifiedShow Answer

What legal actions are available when assistance is needed to resolve a consumer problem?

Paul Spoon has noticed that interest rates have risen in recent months. He is worried that this may make it more difficult for him to finance the purchase of a car. This would be an example of a(n) ________ factor that influences his purchasing decision.

Correct AnswerverifiedShow Answer

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. Members can save a considerable amount on the groceries they purchase in the store. Stephanie is most likely shopping in which type of store?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

Which one of these statements best describes the major criticism of service contracts?

Correct AnswerverifiedShow Answer

A vehicle sold "as is" has:

Correct AnswerverifiedShow Answer

Near-field communications (NFC) allows consumers to make purchases by waving their smartphones in front of a sensor when paying.

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

Impulse buying refers to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Advertising is a type of consumer information commonly provided by:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Regular vehicle maintenance is essential to extending the life of your car. Engine oil should be changed approximately every months or ___ miles.

Correct Answer
verified
B

Correct Answer
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B

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