Question 1

Arbitration differs from mediation in that arbitration:

Accepted Answer

A)   involves government officials.
B)   requires the use of a lawyer.
C)   is only available in certain states.
D)   allows compromise through negotiation.
E)   is legally binding.F) C) and E)
G) B) and E)

Question 2

The main purpose of Consumers Union is to:

Accepted Answer

A)   evaluate the quality of products and services.
B)   reduce fire hazards of home appliances.
C)   handle consumer complaints from government workers.
D)   represent the government in consumer complaint hearings.
E)   provide environmental information on automobiles.F) B) and C)
G) A) and B)

Question 3

____________ is the settlement of a difference by a third party whose decision is legally binding.

Accepted Answer

A)   Negotiation
B)   Mediation
C)   Arbitration
D)   Servicing
E)   Cooperative actionF) A) and C)
G) A) and B)

Question 4

The purpose of small claims court is to:

Accepted Answer

A)   regulate fair business activities.
B)   provide hearings on proposed consumer protection laws.
C)   allow consumers with similar complaints to take action as a group.
D)   resolve minor consumer complaints.
E)   assist low-income consumers who need legal help.F) D) and E)
G) All of the above

Question 5

Emily is trying to decide whether to lease or buy a car. Which one of the following is not a factor necessary in making the comparison?

Accepted Answer

A)   Down payment
B)   Monthly lease payments
C)   Gasoline costs
D)   Estimated value of vehicle at end of lease period
E)   Mileage overage chargesF) B) and C)
G) A) and E)

Question 6

Sally Nash has decided she needs a new car. After doing some research, she has settled on a midsized four door sedan. She likes the Honda Accord and is exploring the features she needs and wants on this car. She is also trying to decide whether she would be better off purchasing a new car, a used car, or leasing a car. She knows that if she purchases it new it would likely last her for many, many years. On the other hand a used car would be a lot cheaper. She is not sure a lease is for her because of the mileage requirements. What step in the purchasing process is Sally 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) None of the above

Question 7

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of:

Accepted Answer

A)   a stated intent of the seller.
B)   actions by consumers.
C)   the intended use of a product.
D)   rulings of federal consumer agencies.
E)   a written statement from the manufacturer.F) A) and C)
G) C) and D)

Question 8

The Sears Kenmore dishwasher is an example of a:

Accepted Answer

A)   national brand.
B)   store brand.
C)   generic brand.
D)   local brand.
E)   regional brand.F) All of the above
G) A) and D)

Question 9

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

Accepted Answer

A) True 
 B)False

Question 10

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

Accepted Answer

A) True 
 B)False

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 these are advantages.F) A) and B)
G) All of the above

Question 12

Advertising is a type of consumer information commonly provided by business organizations.

Accepted Answer

A) True 
 B)False

Question 13

Open dating information provides consumers with information about product freshness.

Accepted Answer

A) True 
 B)False

Question 14

A scam that involves malicious software or an e-mail attachment that plants a virus or worm in the user's computer or in a server that directs traffic on the Internet is called:

Accepted Answer

A)   a foreign scam.
B)   a bogus campus card scheme.
C)   pharming.
D)   an internet pyramid scheme.
E)   phishing.F) A) and B)
G) A) and C)

Question 15

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 D)
G) B) and D)

Question 16

Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that the suggested retail price is $22,200 and that the dealer's invoice price is $19,980. It is time for him to go to a dealer and negotiate the price he will pay for his new car. What step in the purchasing process is Lorenzo carrying out?

Accepted Answer

A)   Problem identification
B)   Information gathering
C)   Evaluating alternatives
D)   Determining the purchase price
E)   Post purchase activitiesF) D) and E)
G) A) and B)

Question 17

The main purpose of the Edmund's Guide is to:

Accepted Answer

A)   monitor safety problems of existing vehicles.
B)   provide price data.
C)   reduce sales of stolen vehicles.
D)   list cars available for sale from government agencies.
E)   provide VIN numbers for vehicles.F) B) and E)
G) A) and D)

Question 18

The most consistent quality is usually found with nationally known, brand-name products.

Accepted Answer

A) True 
 B)False

Question 19

Most cars bought from private parties have:

Accepted Answer

A)   no implied warranties.
B)   a 30-day return privilege.
C)   a limited warranty.
D)   no express warranty.
E)   a government-supported repair guarantee.F) A) and B)
G) C) and E)

Exam 8: Consumer Purchasing Strategies and Legal Protection

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

Correct Answer
verified

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

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

Correct Answer
verified

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

Correct Answer
verified

A scam that involves malicious software or an e-mail attachment that plants a virus or worm in the user's computer or in a server that directs traffic on the Internet is called:

Correct Answer
verified

Correct Answer
verified

Correct Answer
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The main purpose of Consumers Union is to:

Correct Answer
verified

Most cars bought from private parties have:

Correct Answer
verified

Advertising is a type of consumer information commonly provided by business organizations.

Correct Answer
verified

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of:

Correct Answer
verified

Emily is trying to decide whether to lease or buy a car. Which one of the following is not a factor necessary in making the comparison?

Correct Answer
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Arbitration differs from mediation in that arbitration:

Correct Answer
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The main purpose of the Edmund's Guide is to:

Correct Answer
verified

The purpose of small claims court is to:

Correct Answer
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Open dating information provides consumers with information about product freshness.

Correct Answer
verified

The Sears Kenmore dishwasher is an example of a:

Correct Answer
verified

____________ is the settlement of a difference by a third party whose decision is legally binding.

Correct Answer
verified

The most consistent quality is usually found with nationally known, brand-name products.

Correct Answer
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

Mediation involves a legally binding decision by a third party to solve a consumer complaint.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.

Correct AnswerverifiedShow Answer

A scam that involves malicious software or an e-mail attachment that plants a virus or worm in the user's computer or in a server that directs traffic on the Internet is called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The main purpose of Consumers Union is to:

Correct AnswerverifiedShow Answer

Most cars bought from private parties have:

Correct AnswerverifiedShow Answer

Advertising is a type of consumer information commonly provided by business organizations.

Correct AnswerverifiedShow Answer

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of:

Correct AnswerverifiedShow Answer

Emily is trying to decide whether to lease or buy a car. Which one of the following is not a factor necessary in making the comparison?

Correct AnswerverifiedShow Answer

Arbitration differs from mediation in that arbitration:

Correct AnswerverifiedShow Answer

The main purpose of the Edmund's Guide is to:

Correct AnswerverifiedShow Answer

The purpose of small claims court is to:

Correct AnswerverifiedShow Answer

Open dating information provides consumers with information about product freshness.

Correct AnswerverifiedShow Answer

The Sears Kenmore dishwasher is an example of a:

Correct AnswerverifiedShow Answer

____________ is the settlement of a difference by a third party whose decision is legally binding.

Correct AnswerverifiedShow Answer

The most consistent quality is usually found with nationally known, brand-name products.

Correct AnswerverifiedShow Answer

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