Personal Finance CH 6 SmartBook

When selecting a lawyer, questions about legal costs should focus on the way charges will be calculated, such as _________________ fee, _________________ rate, or contingency basis.

Blank 1: flat Blank 2: hourly

An ___________________ warranty, usually in writing, is created by the seller or manufacturer and has two forms: the full warranty and the limited warranty. Use one word per blank.

express

Select all that apply The factors that influence the price of a used car include:

features and options demand for the model number of miles condition

In ______________________, a third party tries to settle a grievance. However, the process is non-binding.

mediation

One of the most useful sources of information regarding products during the preshopping phase is ______________ that provide buying guidance and shopping suggestions.

online reviews

True or false: The first step in the consumer complaint process is litigation.

FALSE

Lease payments are often less than loan payments.

TRUE

Which is the final step in the process of resolving consumer complaints?

Take legal action

If you cannot resolve a complaint at the local level, then you should next express your concern to customer service where?

At the corporate level

The small claims court process usually takes place without which of the following?

A lawyer

Which of the following is a guideline for avoiding being taken by deceptive business practices?

Be cautious of offerings that seem too good to be true

Select all that apply Which of the following automobile costs are variable costs?

Gas Parking costs and tolls Repairs Oil

Select all that apply An individual would benefit from comparison shopping when wanting to purchase which of the following types of products and/or in which of the following situations?

Products where quality differs greatly among sellers Products that are sold by many different sellers at various prices Expensive or complex products

Which of the following is NOT true concerning small claims court?

You can generally sue for as much as $100,000 in small claims court.

Most consumer complaints are resolved:

at the original location

Select all that apply Which of the following are drawbacks of leasing an automobile?

Costs incurred for extra mileage No ownership interest in the vehicle Costs incurred for certain repairs

Select all that apply Which of the following are examples of groups of people that might qualify for a class-action suit?

Customers overcharged for a service Auto owners charged for unneeded replacement parts for their vehicles People injured by a defective product

Select all that apply Which of the following questions are considered when selecting a lawyer?

Is the lawyer experienced in similar types of cases? When is payment due? How will charges be set?

A wide variety of economic, social, and personal factors affect daily buying habits.

TRUE

Most consumer complaints are resolved at the original sales location.

TRUE

True or false: The drawbacks of leasing an automobile include no ownership in the vehicle and costs for extra mileage, for certain repairs, and for turning the car in early.

TRUE

Which of the following is NOT true? A full warranty states that a defective product can be fixed or replaced during a reasonable amount of time. An express warranty is usually in writing and created by the seller. A limited warranty may cover parts but not labor or shipping costs. A limited warranty states that a defective product can be fixed or replaced within a certain time.

A limited warranty states that a defective product can be fixed or replaced within a certain time.

Which of the following is NOT true regarding class-action suits?

People impacted by a bad product must participate in a class action and not sue on their own.

Which of the following is true regarding comparison shopping for used vehicles?

Warranties offered by used-car dealers are usually limited

True or false: You should begin the consumer complaint process at the corporate headquarters of the store where the problem began.

FALSE

True or false: One of the factors that influences the price of buying a used car is capitalized cost.

FALSE

Select all that apply Which of the following automobile costs are fixed ownership costs?

Interest on car loans Depreciation Insurance Registration fees

A network of community law offices that provide legal assistance to people who cannot afford their own attorney is called:

a legal aid society.

One possible _____________________ (advantage/drawback) of leasing an automobile is the smaller upfront cash outlay (i.e., security deposit).

advantage

Which of the following would be included in Phase 3, Selection and Purchase, of the decision-making process for making major buying decisions?

Negotiation activities to obtain a lower price

In _______________, a third party tries to settle a grievance through a legally-binding process.

arbitration

A legal ________________________ society is one of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney.

aid

Which of the following is NOT a guideline for avoiding being taken by deceptive business practices?

Do not hesitate to act quickly if a deal seems just too good to pass up

Select all that apply Which of the institutions are used for auto loans?

banks credit unions consumer finance companies

The common sources of information regarding products during the preshopping phase include personal ________________, business organizations, media, and independent testing agencies such as Consumer Reports.

contacts

Banks, credit ___________________, and consumer finance companies are all sources of car loans.

unions