Chapter 6

Which of the following is correct about the lemon law?

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 in a nonbinding process is called a(n)

Mediation

The text identifies several phases in the research-based buying process. The correct order of the phases is

Pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities

George has never bought a new car before. Which of the following techniques should he use to get the best deal?

Research the dealer cost and begin negotiations

Which of the following is a disadvantage of a car lease?

at the end of the lease, you have no ownership interest in the vehicle

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?

class action lawsuit

This type of promotion immediately reduces the amount a family spends on groceries each week.

coupons

A fixed operating cost for a vehicle is

depreciation

The dealer's cost is also known as the

invoice price

A variable operating cost for a vehicle is

maintenance and repairs

Which of the following is an advantage of a car lease?

monthly lease payments are usually lower than montly financing payments

If you have a problem whose remedy will be between $1,500 and $3,000, the appropriate tool to use would be (a)

small claims court

This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired

warranty

The average used car costs about ________ less than the average new car

10,000

When Jane researched the brands and prices of refrigerators, she was

Comparison shopping