personal finance 6

Two important sources of used car prices are Edmund's Used Car Prices and the Kelley Blue Book.

True

Most consumer complaints are resolved:

at the original location

If a 10 pound bag of dog food sells for $6.99, what is the per unit cost of the dog food?

Almost $0.70 per pound

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

Warranties offered by used-car dealers are usually limited

The information on the label of some food products includes dating that helps the consumer determine freshness or shelf life of a perishable product.

Blank 1: open or expiration

It is important to have all the necessary information about the product and buying situation when using negotiation to determine the purchase price of cars or real estate. (Enter one word per blank.)

Blank 1: price

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

False

Which of the following are techniques that you should avoid when purchasing a vehicle?

Leaving a deposit to hold the vehicle Highballing Low balling Asking how much can you afford per month

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

Take legal action

Which items below are used in determining the cost of an automobile lease?

The monthly payments and the number of months Capitalized cost Residual value - the projected value at the end of the lease Money factor----the interest rate paid on the capitalized cost

Which of the following are drawbacks of leasing an automobile?

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

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

a legal aid society.

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

Which of the institutions are used for auto loans?

consumer finance companies credit unions banks

Product labels on appliances include information on operating to assist you in selecting the most energy-efficient models.

cost

When comparing the cost to buy versus the cost to lease an automobile, the ______ cost of the security deposit should be considered.

opportunity

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

condition features and options number of miles demand for the model

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

Blank 1: unions or union

Which of the following questions are considered when selecting a lawyer?

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

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, hour, day, or daily

A (full/limited) warranty states that a defective product can be fixed or replaced during a reasonable amount of time.

Blank 1: full

Owners of new cars are protected by the laws when repeated attempts have been made to have the car fixed without success.

Blank 1: lemon

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

Blank 1: mediation

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

False

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

Which of the following automobile costs are fixed ownership costs?

Depreciation Insurance Registration fees Interest on car loans

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

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

False

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

shipping or repairs.

Lemon laws require a(n) for the vehicle after the owner has made repeated unsuccessful attempts to get the car fixed by the dealer.

refund

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.

Depreciation is the largest ______ cost of a new vehicle.

fixed

Which of the following is an example of a limited warranty?

The parts for your air conditioner will be replaced during the warranty period if damaged, but you will pay for the labor.

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

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.

The two key sources of current used-car prices in the United States are Edmund's Used Car Prices and Blue Book.

Blank 1: Kelley

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

Blank 1: arbitration

Which of the following is NOT a sales technique to avoid when shopping for vehicles?

Deal with a person at the dealership who has authority to give you a lower price

Which of the following is the first phase in a planned decision-making process?

Preshopping activities

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

Depreciation

True or false: A full warranty covers only certain aspects of the product and requires the buyer to share in the cost of repairs or shipping.

False

True or false: Social factors that affect your buying habits include peer pressure, culture, and inflation.

False

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: Well-maintained and certain high-quality vehicles depreciate at slower rates than vehicles not receiving the same level of care or not consisting of the same high quality.

True

The range available for negotiation for a new car is the difference between the price and the cost.

Blank 1: sticker Blank 2: dealer's,

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

Blank 1: contacts,

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

True

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

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

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

Well-maintained and certain high-quality vehicles, such as BMW, depreciate at (higher/slower) rates.

Blank 1: slower

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

The difference between the sticker price and the _____ is the range available for negotiation.

dealer's cost

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

power

Which of the following automobile costs are variable costs?

Parking costs and tolls Gas Repairs Oil

A unit price of a box of cereal is found by dividing the price of the product by the number of ounces in the product box or container.

True

Lease payments are often less than loan payments.

True

Which of the following items is NOT a factor in the cost of a lease of an automobile?

Price of accessories

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

True

Which of the following is NOT true?

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

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

A lawyer

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

Blank 1: advantage

At the end of a car lease, if the market value of the car is less than the residual value, you may be able to sell the car for a profit.

False

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.

Blank 1: aid

Most consumer complaints are resolved at the original sales location.

True

As per the book, at the end of the lease, if the residual value of the vehicle is greater than its market value, then you should return the car to the leasing company.

True

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.

Blank 1: express

A car with a total purchase price of $12,000 is available while a comparable model can be leased for $350 a month for 36 months with end-of-lease costs of $800. Which arrangement should you choose?

The outright purchase because its cost is lower.