chapter 4 test - financial lit

social factors obviously affected Fran's choice of backpack if the pack is (a) a popular style (b) well-made (c) easily repaired (d) reasonably priced.

(a) a popular style

an implied warranty guarantees that (a) a product is fit for its intended use (b) a defective product will be fixed (c) only certain parts of a product are under warranty (d) the distributor will replace a defective product

(a) a product is fit for its intended use

the settlement of a difference by a third party whose decision is legally binding is called (a) meditation (b) arbitration (c) dispute resolution (d) a class action

(b) arbitration

product labels for appliances generally include (a) open dating (b) operating instructions (c) health claims (d) unit pricing

(b) operating instructions

a disagreement over an amount less than $500 is generally handled (a) through a legal aid society (b) in a class-action suit (c) at small claims court (d) by members of the American Bar Association.

(c) at small claims court

direct selling includes all the following kinds of shopping except (a) mail order (b)telephone sales (c) mall (d) online

(c) mall

in what order should you pursue the following courses of action when you are dissatisfied with a purchase and suspect fraud? (a) resort to dispute resolution (b) take legal action (c) return to the place of purchase (d) get help from a consumer agency (e) contact company headquarters?

(c) return to the place of purchase (e) contact company headquarters (d) get help from a consumer agency (a) resort to dispute resolution (b) take legal action

comparison shopping is a waste of time when buying an item such as (a) a computer (b) shampoo (c) salt (d) school supplies.

(c) salt

when you are dissatisfied with a product and are seeking satisfaction, your last resort should be (a) complaining at the original place of purchase (b) getting help from a consumer agency (c) taking legal action in small claims court (d) using a dispute resolution program.

(c) taking legal action in small claims court

you would most likely negotiate the price for a(n) (a) pair of jeans (b) airline ticket (c) tennis racket (d) car.

(d) car

before you begin to shop, you should (a) decide to pay cash (b) opt to delay payment (c) identify your needs (d) compare prices at different stores.

(d) compare prices at different stores

what does generic mean?what are some examples of generic products that many be identical to name brands? why are generic brands less expensive than name brands?

1) Brands that don't advertise 2) sodas, juices, cereal, paper products 3) because name brands build the name into the cost of the item

how do you compare unit prices and why should you do this when buying a product like laundry detergent?

1) price/number of ounces 2) to try to get the lowest price while getting more for your money

identify two factors the might affect your purchase of a pair of running shoes.

1) the brand name 2) the quality of the shoes

list 4 psychological traps in supermarkets

1) the store layout 2) entrances and exits 3) product placement on shelves 4) putting milk, bread, and produce in the corners of the store

compare the advantages and disadvantages of using cash instead of a credit card to purchase an expensive item.

Although a credit card is usually easier and quicker to use, it's leads to a lot of debt in the future

why do you think convince stores are generally more expensive than supermarkets?

Because you are paying for the convince of the item.

the process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding called __________.

arbitration

a(n) ________ is a legal action on behalf of all people who have suffered the same injustices.

class action suit

a nonprofit organization owned and operated by its members is called a(n) ___________.

cooperative

________ is dishonest business practices that are meant to deceive, trick or gain an unfair advantage.

fraud

___________ is purchasing items on the spur of the moment.

impulse buying

____________ is the attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation.

mediation

_______ indicates the freshness, or shelf life, of a perishable product such as milk or bread.

open dating

a separately purchased agreement by the manufacturer or distributor to cover the costs of repairing the item is called a(n) _______.

service contract

_________ deals with legal disputes that involve amounts below a certain limit.

small claims court

a(n) _________ is a written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired.

warranty

when is comparison shopping helpful?

when buying expensive things or things you buy frequently