Question 1

The purpose of an automobile service contract is to:

Accepted Answer

A)   reduce operating costs of the vehicle.
B)   cover regular maintenance.
C)   provide automobile insurance at a discount.
D)   repair major problems after the warranty expires.
E)   stay informed of government safety recalls.F) A) and B)
G) A) and E)

Question 2

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

Question 3

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

Question 4

One way to gather information about a product is to use an independent testing organization like Consumers Union.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 7

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

Question 8

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) All of the above
G) A) and B)

Question 9

Service contracts are usually included in the cost of appliances and other high-priced items.

Accepted Answer

A) True 
 B)False

Question 10

Representation by a lawyer is usually required in small claims court.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

The purpose of a service contract is to:

Accepted Answer

A)   prevent legal action due to a defective product.
B)   protect a product owner from expensive repairs.
C)   reduce the chance of needing repairs.
D)   obtain regular maintenance on a product.
E)   have legal assistance for consumer complaints.F) A) and D)
G) B) and E)

Question 13

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which type of government agencies publish materials to assist consumers with buying decisions and financial planning?

Accepted Answer

A)   Federal
B)   Local
C)   State
D)   All of these
E)   None of theseF) A) and B)
G) A) and E)

Question 16

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

Question 17

Which of the following statements about a legal aid society is not true?

Accepted Answer

A)   It provides legal assistance to people who cannot afford their own attorney.
B)   It is part of a network of community law offices.
C)   It provides legal assistance at minimal cost or without charge.
D)   It is a for-profit organization.
E)   It is a publicly supported organization.F) A) and B)
G) C) and D)

Question 18

An example of an economic buying influence would be:

Accepted Answer

A)   family size.
B)   inflation.
C)   advertising.
D)   hobbies.
E)   place of residence.F) C) and E)
G) A) and B)

Question 19

An implied warranty that comes with a used car is that:

Accepted Answer

A)   major repairs are the responsibility of the seller.
B)   government agencies will repair safety defects.
C)   the vehicle is in operating condition.
D)   hidden defects will be repaired at no cost to the buyer.
E)   the vehicle will be serviced free of charge for one year.F) A) and E)
G) None of the above

Question 20

Distinguish between an implied warranty and an express warranty.

Accepted Answer

The answer of Distinguish between an implied warranty and an...

Exam 8: Consumer Purchasing Strategies and Legal Protection

One way to gather information about a product is to use an independent testing organization like Consumers Union.

Correct Answer
verified

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

Correct Answer
verified

Small claims courts:

Correct Answer
verified

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

Correct Answer
verified

Distinguish between an implied warranty and an express warranty.

Correct Answer
verified

Representation by a lawyer is usually required in small claims court.

Correct Answer
verified

The purpose of a service contract is to:

Correct Answer
verified

Private label products are those that:

Correct Answer
verified

The purpose of an automobile service contract is to:

Correct Answer
verified

Correct Answer
verified

Service contracts are usually included in the cost of appliances and other high-priced items.

Correct Answer
verified

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

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

Which of the following statements about a legal aid society is not true?

Correct Answer
verified

An example of an economic buying influence would be:

Correct Answer
verified

Which type of government agencies publish materials to assist consumers with buying decisions and financial planning?

Correct Answer
verified

An implied warranty that comes with a used car is that:

Correct Answer
verified

Most consumer complaints are resolved by:

Correct Answer
verified

A cooperative is designed to:

Correct Answer
verified

Correct Answer
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

One way to gather information about a product is to use an independent testing organization like Consumers Union.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small claims courts:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Distinguish between an implied warranty and an express warranty.

Correct AnswerverifiedShow Answer

Representation by a lawyer is usually required in small claims court.

Correct AnswerverifiedShow Answer

The purpose of a service contract is to:

Correct AnswerverifiedShow Answer

Private label products are those that:

Correct AnswerverifiedShow Answer

The purpose of an automobile service contract is to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Service contracts are usually included in the cost of appliances and other high-priced items.

Correct AnswerverifiedShow Answer

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

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

Which of the following statements about a legal aid society is not true?

Correct AnswerverifiedShow Answer

An example of an economic buying influence would be:

Correct AnswerverifiedShow Answer

Which type of government agencies publish materials to assist consumers with buying decisions and financial planning?

Correct AnswerverifiedShow Answer

An implied warranty that comes with a used car is that:

Correct AnswerverifiedShow Answer

Most consumer complaints are resolved by:

Correct AnswerverifiedShow Answer

A cooperative is designed to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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