chapter 6 personal finance

A service contract a Covers the repair costs of a product. b Usually does not cover the engine cooling system. c Is better than an extended warranty. d Is an agreement to cover repair during the implied warranty period. e Is included automatically with the purchase of a vehicle

Covers the repair costs of a product.

During problem identification, a clear statement of a problem is "I need to have a car." True False

false

In every state, small claims courts are available to handle legal disputes involving major amounts of money. True False

false

A service contract is frequently called an extended warranty even though service contracts are not warranties. True False

true

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. a Full warranty b Express warranty c Limited warranty d Implied warranty e "As-is" warranty

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? a Implied warranty b "As-is" warranty c Limited warranty d Full warranty e Express warranty

Full warranty

The dealer's cost is also known as the a Residual value. b Invoice price. c Set price. d Sticker price. e Capitalized cost.

Invoice price.

Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts. a Full warranty b Express warranty c "As-is" warranty d Implied warranty e Limited warranty

Limited warranty

This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired. a Rebate b Coupon c Unit pricing d Open dating e Warranty

Warranty