Chapter 6
The average used car costs about _______ less than the average new car.
C. $10,000
Which of the following is NOT a strategy for wise buying?
C. Buying items on impulse
Adolph has a low income and needs legal assistance. He should make use of (a)
C. Legal aid society
These products are sold by one chain of stores and are low-cost alternatives to famous-name products.
D. Two of the above are correct
Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may want to consider all of the following except
D. All of the above may be considered
Izzy is thinking about leasing a sports car. She will make monthly payments based on a money factor and the ____________
D. Capitalized cost
The price of a leased vehicle is known as the
D. Capitalized cost
Which of the following is correct about the lemon law?
D. It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.
A process used to settle grievances using a nonbinding process is called a(n)
D. Mediation
Which of the following is an advantage of a car lease?
D. Monthly lease payments are usually lower than monthly financing payments
If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use (a)
D. Prepaid legal services
Choosing the payment method is part of the ____ phase of the decision-making process.
D. Selection and purchase
Which of the following is not a legal option for upper-income consumers?
C. Legal aid society
These products are highly advertised and available at many stores
C. National-brands
A potential problem with having a long car loan is
C. Negative equity
A vehicle lease has several costs. Which of the following is the periodic cost?
C. Payment amount
Information gathering is part of the ____ phase of the decision-making process.
C. Pre-shopping activities
Which of the following is a cost associated with a vehicle lease?
E. All of the above
All of the following are appropriate questions you could ask before making a major purchase except
E. All of the above are questions that should be asked.
A service contract
E. Covers the repair costs of a product.
A variable operating cost for a vehicle is
E. Maintenance and repairs
Comparison shopping will be beneficial for buying
E. Items that can be researched easily with advertisements
Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time.
C. Full warranty
Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop?
C. Full warranty
When purchasing a used vehicle, it is a good idea to
C. Have a trained and trusted mechanic of your choice check out the vehicle
Paul bought some bad gasoline that damaged the gas tank of his vehicle.
C. He should provide the gas station with documentation of his purchase and all repair costs.
A no-haggling dealer will use a(n) _______
C. Set-price
Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have?
E. Limited warranty
The expected value of a vehicle at the end of a lease is called the
E. Residual value
If you have a problem whose remedy will be $1500 - $3000, the appropriate tool to use would be (a)
E. Small claims court
A fixed operating cost for a vehicle is
A. Depreciation
Which of the following costs will directly increase with the number of miles driven?
B. Gasoline
Comparison shopping will be beneficial for buying all of the following except
A. A hot dog at the baseball park
A vehicle lease has several costs. Which of the following is the price of the vehicle?
A. Capitalized cost
Craig wants to get his old car repaired, but he doesn't want to spend very much money. He probably will NOT want to go to a
A. Car dealer
Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?
A. Class-action lawsuit
When Jane researched the brands and prices of her refrigerator, she was
A. Comparison shopping
This type of promotion provides an immediate savings for consumers.
A. Coupons
All of the following are variable operating costs for a vehicle except
A. Depreciation
The largest fixed expense associated with a new automobile is
A. Depreciation
Comparison of product features is part of the ____ phase of the decision-making process.
A. Evaluating alternatives
Price analysis is part of the ____ phase of the decision-making process.
A. Evaluating alternatives
Helga plans to purchase a pick-up truck. She should begin her price negotiation at the
A. Invoice price
The dealer's cost is also known as the
A. Invoice price
Which of the following is a disadvantage of a car lease?
B. At the end of the lease, you have no ownership interest in the vehicle
Jacob drives by a Big Box home improvement center on his way home from work. He usually stops and buys something because it makes him feel good. Jacob is
B. Compulsive shopping
Mike bought a new car. His new car warranty probably included all except
C. Extended coverage for air conditioning
A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?
B. Money factor
This shopping device is used primarily on perishable products.
B. Open dating
Properly maintaining and operating the product is part of the ____ phase of the decision-making process.
B. Post-purchase activities
Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by
B. County health department
Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer and has two forms?
B. Express warranty
Which of the following is the best way to state a problem?
B. I need transportation.
A vehicle lease has several costs. Which of the following is the expected value at the end of the lease?
D. Residual value
Negotiation activities are part of the ____ phase of the decision-making process.
D. Selection and purchase
Steven needs to write a will. His best resource is (a)
B. Lawyer
Resolving purchase concerns is part of the ____ phase of the decision-making process.
B. Post-purchase activities
The amount printed on a label that is posted on a vehicle is called
B. Sticker price
Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts.
E. Limited warranty
All of the following are fixed operating costs for a vehicle except
E. Maintenance and repairs
This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired.
E. Warranty
While Paul was shopping for a new chainsaw, he found a great deal on new drill and bought it. This is an example of
C. Impulse shopping
Problem identification is part of the ____ phase of the decision-making process.
C. Pre-shopping activities
The text identifies several phases in the buying process. The correct order of the phases is
C. Pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities
The partial refund of the price of a product is called
C. Rebates
Think about consumer complaints. Which of the following is correct?
D. If you don't get satisfaction from working with headquarters, you may get assistance from a mediator in order to avoid legal action.
Frank bought some mini-blinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have?
D. Implied warranty
Most products come with some guarantee of quality. This type of warranty covers the product's intended use or other basic understandings that are not in writing.
D. Implied warranty
George has never bought a car before. Which of the following techniques should he use to get the best deal?
D. Research the actual dealer cost and begin negotiations from that point
A standard measurement used to compare packages of different sizes is
D. Unit pricing
Which of the following sources would be the LEAST helpful when purchasing a vehicle?
E. Your cousin who has never purchased a car
