Question 1

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

Question 2

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 E)
G) B) and C)

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 B)
G) A) and E)

Question 4

The sticker price of a car refers to:

Accepted Answer

A)  the amount of government taxes on a new car.
B)  the cost of repairing a used car which is for sale.
C)  the list of optional equipment that may be added to a car.
D)  the suggested retail price of a new car.
E)  a comparison of costs and performance of comparable cars.F) A) and D)
G) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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) A) and E)
G) C) and D)

Question 8

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) A) and E)
G) None of the above

Question 9

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) A) and C)
G) D) and E)

Question 10

Open dating information provides consumers with information about product freshness.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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) B) and E)
G) None of the above

Question 14

The first phase in the buying process involves information gathering.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

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)  E. 12¢ an ounce.F) A) and C)
G) A) and E)

Question 19

What factors influence most people's buying decisions?

Accepted Answer

The answer of What factors influence most people's buying decisions?...

Question 20

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) C) and D)
G) D) and E)

Exam 8: Consumer Purchasing Strategies and Legal Protection

Open dating information provides consumers with information about product freshness.

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

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

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

Correct Answer
verified

Correct Answer
verified

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 Answer
Answered by ExamLex AI
First and foremost, Steve should contact...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

The first phase in the buying process involves information gathering.

Correct Answer
verified

The Sears Kenmore dishwasher is an example of a:

Correct Answer
verified

The sticker price of a car refers to:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

What factors influence most people's buying decisions?

Correct Answer
verified

Cooperatives are most commonly organized to sell:

Correct Answer
verified

The purpose of an automobile service contract is to:

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
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

Open dating information provides consumers with information about product freshness.

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The first phase in the buying process involves information gathering.

Correct AnswerverifiedShow Answer

The Sears Kenmore dishwasher is an example of a:

Correct AnswerverifiedShow Answer

The sticker price of a car refers to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

What factors influence most people's buying decisions?

Correct AnswerverifiedShow Answer

Cooperatives are most commonly organized to sell:

Correct AnswerverifiedShow Answer

The purpose of an automobile service contract is to:

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
First and foremost, Steve should contact...
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
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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