Chapter 15 Review Principles of Business

Buying items quickly without much prior thought is called _____ buying.

impulse

Consumer information you get from other people who have tried a product or service is sometimes referred to as word-of-______ information.

mouth

A unit ____ is how much something costs per unit of measure

price

If you purchase something online or by telephone, the seller must send you the item within _____ days.

30

The US Department of _____ offers publications and online information about food buying, meal planning and nutrition.

Agriculture

What responsibilities do consumers have in business relationships? What is the most important responsibility consumers have?

Be honest, reasonable, active, informed, and involved. The most important is to be informed.

If you plan to buy a product at a particular store, you could contact the Better ______ Bureau to find out what experiences other consumers have had with that store.

Business

Describe how the consumer movement came about.

Businesses tried to take advantage of consumers with false claims, high prices, and unsafe products. Consumers united to demand fair treatment from businesses.

A service contract is a promise made by the manufacturer or dealer that a product is of a certain quality.

False

About half of the states, mostly located in the West and Northeast, have consumer protection agencies.

False

The Better Business Bureau cab recommend products or companies to consumers.

False

When you have a problem with a business, the first thing you should do is to threaten to sue.

False

_______ occurs when consumers are given false information in an effort to make a sale.

Fraud

_________ involves the use of a third party who tries to resolve the complaint between the consumer and the business.

Mediation

Describe the kinds of consumer information you might find on a product label.

Nature or content of a product, what the product is made of, size, how to care for it, when and where it was made.

The right to service means that consumers can expect convenience, courtesy, and responsiveness to consumer problems and needs.

True

What is the difference between a national brand and a store brand? What are the advantages of each?

Store brands are usually sold at a lower cost than national brands. National brands are sold to private companies and bigger incomes. Store brands are basically a cheaper item but the same purpose.

One of the main activities of the Federal _____ Commision is to prevent one firm from using unfair practices to force competing firms out of business.

Trade

Certain seasons and conditions favor goods being sold at reduced prices.

True

It is not always the smart choice to buy the least expensive product.

True

Many manufacturers pay product testing organizations to perform problem safety tests on their products.

True

Store brands are usually sold at a lower cost than national brands.

True

The Internet has become the number one source of fraudulent offers to consumers.

True

This government agency makes certain medicines and cosmetics products are not harmful to consumers

a. Food and Drug Administration

Which of the following publications would probably be your BEST source of information about how to invest your money?

a. Kiplinger's Personal Finance Magazine

An______is a given name to a product or service to distinguish it from other similar and competitive items.

a. brand

A small food retailer that stocks popular items at higher prices and emphasizes an accessible location and long operating hours is called a

a. convenience store

The most important responsibility consumers have is to be

a. informed

If an unreceived or returned item is billed to your credit card, how long do you have to dispute it?

b. 60 days

This product testing organization tests electrical components of products from all over the world for fire and electrical safety.

b. Underwriters Laboratories

Which of the following constitutes fraud?

b. a salesperson tells you that a car has new brakes and it does not

Because of an error in the pricing bar code, everyone who bought a pair of jeans a a nationwide clothing store last month was overcharged by three dollars. The legal action that would be most appropriate in the case would be

b. class action lawsuit

A guarantee

b. is usually in writing

This type of sale is often used when a new store opens or when new products are introduced.

b. promotional sale

Which of the following lists the steps in the consumer complaint process in the correct order?

c. contact the place of purchase; contact the company headquarters; involve a consumer agency; take legal action

Which of the following is NOT a business source of consumer information?

c. the Environmental Protection Agency

Generic products are less expensive than other items because

c. they do not require advertising and fancy packaging

Courts that resolve cases involving small amounts of money are called small ______ courts.

claims

A _______ action suit is a legal action by one party behalf of a group of people who all have the same grievance.

class

A _____ sale is used to move out merchandise that stores no longer wish to carry.

clearance

The dollar limit for cases heard in small claims court ranges from less than ____ in some states to _____ in others.

d. $1,000; $10,000

Comparison shoppers usually evaluate which of the following?

d. all of the above

Which of the following shows the correct order of the decision-making process for buying a product or service?

d. identify needs and wants; know the choices available; determine desired satisfaction; evaluate alternatives; make the decision

This warranty is imposed by law and is understood to apply even though it has not been stated.

d. implied warranty

All of the following types of businesses are among the main sources of consumer complaints EXCEPT

d. restaurants

Which of the following is NOT one of the Consumer Bill of Rights?

d. the right to low prices

A ________ store emphasizes lower prices on its products; it based its success in a high volume of sales and low prices.

discount

A _________ club is a no-frills outlet focusing on the sale of large quantities at reasonable prices.

warehouse