Personal Finance Chapter 6 T/F
True
A service contract is frequently called an extended warranty even though service contracts are not warranties.
True
A trade-in vehicle should NOT be mentioned until the cost of the new car has been settled.
True
A vehicle that looks rusty on the outside may hide a well-maintained engine.
False
A vehicle that looks rusty on the outside will have major operational problems.
True
A lease for a car or SUV is typically for three to five years.
False
. If you are somewhat interested in a specific vehicle, you should provide a small deposit so the car seller will hold the vehicle for you.
False
A clear statement of a problem is: "I need to have a car."
False
A convenience option that consumers may look for in a vehicle is special trim.
False
A good time to use a lawyer is when you appear in small claims court.
True
Abigail checked out brands and prices of blue jeans at several stores. She was comparison shopping.
False
Abigail checked out brands and prices of blue jeans at several stores. She was impulse shopping.
True
An advantage of a lease over a purchase is that the buyer can usually obtain a more expensive vehicle for the same monthly payment.
False
An aesthetic feature of a vehicle is air conditioning.
False
An example of a "preshopping activity" is negotiating the price of a product.
True
Cam has an overwhelming desire to buy things whenever he goes shopping. One could say that he is a compulsive shopper.
False
If you have a problem with a product and you really want to get the attention of someone in customer service, you should raise your voice during your conversation.
False
If you have a problem with a product, the first place you should express your dissatisfaction to is the corporate headquarters.
True
Joe bought some cheese at his local grocery store. After he brought it home, he noticed it was moldy even though the expiration date was still three weeks away. He should call the toll-free hotline number printed on the package to tell the company of the problem he encountered.
False
Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.
True
One of the best places to find a qualified lawyer who will meet your specific needs is referrals from friends.
False
One of the best ways to compare packaged food products is to use rebate pricing.
False
One of the first steps in a car purchase negotiation should be a discussion of the trade-in vehicle.
True
People should be prepared for problems with purchases.
False
Prices at the local Quick Market (convenience store) will probably be lower than the regional Big Box Retailer (grocery store).
False
Service contracts on vehicles usually are wise financial decisions.
False
Small claims court is used to take legal action by a few individuals on behalf of all who have suffered the same alleged injustice.
False
Studies of consumer problems consistently rank auto repairs as one of the best consumer services with few consumer complaints.
False
The best place to find a qualified lawyer who will meet your specific needs is a phone book.
False
The best time to ask a lawyer about his fees is after he wins a case for you.
True
The largest fixed expense associated with a new automobile is depreciation.
False
The only way that you can have long-term financial security is to not save all of your current income.
False
The phases of buying are: problem identification, pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities.
False
The settlement of a difference by a mediator is legally binding.
True
The settlement of a difference by an arbitrator is legally binding.
True
Thomas bought a toaster that would not toast bread and returned it. The manufacturer accepted the return because it was defective and had a full warranty.
False
Thomas bought a vehicle from a used-car dealer. He returned it to the dealer because the transmission fell out 150 miles after he purchased it. The dealer refused to accept the return because the vehicle was sold 'as is.' This is an example of a limited warranty.
True
Tracy went to a local restaurant and became ill from the meal she ate. She can contact her city or county health department to handle problems with the restaurant.
