Finance: Chapter 8 Smartbook

In _______, a third party tries to settle a grievance and the process is binding.

Arbitration

Most consumer complaints are resolved:

At the original location

The typical ________ -related fraud works by soliciting charitable donations for phony efforts.

Charity

In a(n) ________ -action suit, all affected parties are notified as to whether or not they want to participate or file an individual lawsuit.

Class

Even if you win in small claims court, you will still need to:

Collect the funds

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

Contacts

Products such as real estate or automobiles may be purchased using ________ negotiation.

Cost

Product label on appliances includes information on operating ________ , to assist you in selecting the most energy-efficient models.

Costs

Which of the following are sources of automobile loans?

Credit unions Banks Consumer finance companies

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

The factors that influence the price of a used car include ________.

Demand for the model Features and options Number of miles Condition

The loss of a vehicle's value due to time and use and the largest fixed cost of a new car is called ________.

Depreciation

Which of the following automobile driving costs are categorized as fixed ownership costs?

Depreciation Registration fees Interest on car loans Insurance

An express warranty is usually in writing, is created by the _______ or manufacturer, and has two forms: _______ warranty and limited warranty.

Distributor; Full

When selecting a lawyer, the questions to ask focus on the lawyer's _______ with similar cases, how charges will be set, and when _______ is due.

Experience; Payment

One of the factors that influences the price of buying a used car is capitalized cost.

False

True or false: The monthly payment is the best indicator of the true cost of a car loan.

False

Depreciation is the largest _______ cost of a new vehicle.

Fixed

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

Flat; Hourly

Which of the following automobile driving costs are categorized as variable operating costs?

Gas Oil Repairs Parking costs and tolls

Which of the following are personal factors that could affect your daily buying habits?

Gender Age Education Occupation

A strategy that will help you avoid deceptive business practices is to recall the old adage: "Be cautious about offerings that seem too _______ to be _______."—because they often are.

Good; True

One of the best sources of information about the product you are considering buying is:

Independent testing organizations

A possible advantage of _______ an automobile is the smaller upfront cash outlay.

Leasing

In a(n) _______ process, a third party tries to settle a grievance, but the process is nonbinding.

Mediation

The information on the label of some food products includes _______ dating that helps the consumer determine freshness.

Open

Dealing with the person who has the _______ to give you a lower price is a vital factor of negotiations.

Power

One strategy that will help you avoid deceptive business practices is to always do business with reputable companies that have a track _______ of satisfying customers.

Record

A full warranty states that a defective product can be fixed or _______ during a reasonable amount of time.

Replaced

Most consumer complaints are resolved at the original _______ location.

Sales

A limited warranty covers only certain aspects of the product and requires the buyer to pay part of the costs for:

Shipping or repairs

Which of the following is not a drawback of leasing an automobile?

Small cash outflow

Lifestyle, interests, hobbies, and peer group are all _______ factors that affect your buying decisions.

Social

A variety of scams surface after _______ and _______.

Tragedies; Natural disasters

Monthly car lease payments are often less than monthly car financing payments.

True

True or false: A person could choose not to participate in a class-action suit and instead file an individual lawsuit.

True

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

True

Banks, credit ________, and consumer finance companies are all businesses that are sources of car loans.

Unions

The APR is the best indicator of the true _______ of credit.

Value

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