Question 1

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

Accepted Answer

A)  recommend reputable companies in an area.
B)  resolve consumer complaints against local merchants.
C)  lobby for improved consumer protection laws.
D)  evaluate products and services for quality.
E)  represent business in government hearings.F) C) and D)
G) A) and B)

Question 2

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 C)
G) D) and E)

Question 3

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

Accepted Answer

A)  economic
B)  social
C)  personal
D)  global
E)  financialF) C) and D)
G) B) and D)

Question 4

Sloane owes $2,600 on her car loan.According to Edmond's 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) B) and D)
G) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

To save money and help improve the environment,20SomethingFinance.com suggests that you:

Accepted Answer

A)  Go out to eat more instead of growing your own food.
B)  Replace beans and vegetables in meals with meat.
C)  Use disposable drink bottles.
D)  Ride a bike instead of driving.
E)  Use a high-flow showerhead.F) B) and C)
G) C) and E)

Question 7

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)  Extra costs to turn the car in early.F) B) and E)
G) A) and E)

Question 8

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

Question 9

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

Question 10

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Accepted Answer

A)  Lemon Law
B)  Truth in Lending
C)  Truth in Saving
D)  Fair reporting
E)  Consumer Credit ActF) B) and E)
G) B) and C)

Question 11

An example of Open dating that appears on grocery items is:

Accepted Answer

A)  use by tomorrow.
B)  expires in 5 days.
C)  use before May 6, 2018.
D)  good for 1 month.
E)  fresh for 5 days.F) A) and C)
G) None of the above

Question 12

Which type of government agency provides educational programs to assist consumers with buying decisions?

Accepted Answer

A)  Federal
B)  Consumers Union
C)  Underwriters Laboratories
D)  Consumer Reports
E)  National Highway Traffic Safety AdministrationF) C) and E)
G) C) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The main purpose of the Edmund's Used Car Prices is to:

Accepted Answer

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

Question 15

Which type of purchasing strategy involves comparing unit prices?

Accepted Answer

A)  Timing purchases
B)  Price comparison
C)  Label information
D)  Brand comparison
E)  Store selectionF) B) and C)
G) A) and C)

Question 16

Consumer information from websites is commonly provided by:

Accepted Answer

A)  government agencies.
B)  personal contacts.
C)  independent testing organizations.
D)  media sources.
E)  business organizations.F) A) and B)
G) C) and D)

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

Question 18

Cooperatives are commonly organized to sell:

Accepted Answer

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

Question 19

Which of the following information is required on food labels?

Accepted Answer

A)  Ingredients
B)  Unit pricing
C)  Generic name
D)  Common product name
E)  Brand nameF) B) and D)
G) None of the above

Question 20

Open dating provides information on:

Accepted Answer

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

Exam 8: Consumer Purchasing Strategies and Legal Protection

Consumer information from websites is commonly provided by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To save money and help improve the environment,20SomethingFinance.com suggests that you:

Correct AnswerverifiedShow Answer

Open dating provides information on:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small claims courts:

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

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

Correct AnswerverifiedShow Answer

Which type of government agency provides educational programs to assist consumers with buying decisions?

Correct AnswerverifiedShow Answer

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The main purpose of the Edmund's Used Car Prices is to:

Correct AnswerverifiedShow Answer

Sloane owes $2,600 on her car loan.According to Edmond's Used Car Prices,her car is valued at $1,950.The term used to refer to this situation is:

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

Which type of purchasing strategy involves comparing unit prices?

Correct AnswerverifiedShow Answer

An example of Open dating that appears on grocery items is:

Correct AnswerverifiedShow Answer

Which of the following information is required on food labels?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cooperatives are commonly organized to sell:

Correct AnswerverifiedShow Answer

Impulse buying refers to:

Correct AnswerverifiedShow Answer

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