Chapter 6 Review

  1. Mediation involves a legally binding decision by a third party to solve a consumer complaint.
  2. True
  3. False
  4. Consumer Union is a government agency that tests products for safety.
  5. True
  6. False
  7. Which of the following is usually the largest fixed expense for a new vehicle?
  8. Insurance
  9. Gasoline
  10. Registration, license, and fees
  11. Parking
  12. Depreciation
  13. Representation by a lawyer is usually required in small claims court.
  14. True
  15. False
  16. Small claims court requires a person to have
  17. written testimony.
  18. a case involving less than a set amount.
  19. representation by an attorney.
  20. evidence screened in advance of the hearing.
  21. Mike Jocobs is planning to lease an automobile. In an effort to minimize the price of the vehicle being leased, Mike should compare the ______at different leasing companies.
  22. down payment
  23. capitalized cost
  24. money factor
  25. residual value
  26. number of payments
  27. The purpose of a service contract is to
  28. prevent legal action due to a defective produce.
  29. protect a product owner from expensive repairs.
  30. reduce the chance of repairs of an appliance.
  31. obtain regular maintenance on a product.
  32. have legal assistance for consumer complaints.
  33. A 32-ounce package selling for $1.60 would have a unit price of
  34. $1.60.
  35. $2.00 per pound.
  36. $.05 per ounce.
  37. $.80 per quart.
  38. $.12 per ounce.
  1. Private label products are those that
  2. are sold as government surplus.
  3. require nutritional labeling information.
  4. provide freshness information on the package.
  5. are distributed by national chain stores.
  6. are sold by one chain of stores.
  7. The purpose of an automobile service contract is to
  8. Reduce operating costs of the vehicle.
  9. Cover regular maintenance.
  10. Provide automobile insurance at a discount.
  11. Repair major problems after the warranty expires.
  12. Stay informed of government safety recalls.
  13. A vehicle sold “as is” has
  14. a limited warranty.
  15. no express warranty.
  16. a 30-day guarantee.
  17. a full warranty on parts but not labor.
  18. no implied warranty.
  19. The opportunity costs associated with consumer purchases refer to the cost of an item and any finance charges if the item was purchased on credit.
  20. True
  21. False
  22. Which factor is usually best to use when selecting services?
  23. company size
  24. price
  25. information presented in advertisements
  26. sales staff suggestions
  27. company reputation
  28. Prepaid legal services are programs designed to provide unlimited or reduced-fee legal assistance for a set fee.
  29. True
  30. False
  31. _____ is the settlement of a difference by a third party whose decision is legally binding.
  32. A legal aid society
  33. Mediation
  34. Arbitration
  35. A consumer action panel
  36. Cooperative action
  37. Several federal government agencies publish materials to assist consumers with buying decisions and financial planning.
  38. True
  39. False
  1. The main purpose of Consumers Union is to
  2. Evaluate the quality of products and services.
  3. Reduce fire hazards of home appliances.
  4. Handle consumer complaints from government workers.
  5. Represent the government in consumer complaint hearings.
  6. Which of the following types of warranties is a specific agreement created by the seller or manufacturer?
  7. Express
  8. Implied
  9. Full
  10. Contingent
  11. Limited
  12. A personal opportunity cost associated with a consumer purchase refers to
  13. buying on credit.
  14. selecting a commonly known brand.
  15. the influence of advertising on consumers.
  16. time used to compare prices.
  17. government regulation of deceptive business-government activities in an effort to prevent consumer fraud.
  18. Open dating information provides consumers with a knowledge of product freshness
  19. True
  20. False

Chapter 6 Review

Personal Finance 1200-C