PF Chapter 6

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.

aid

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, connections, or network

A __________ warranty, usually in writing, is created by the seller or manufacturer and has two forms: the full warranty and the limited warranty.

Blank 1: express

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

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

Blank 1: mediation

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

Blank 1: price

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, dealers, seller's, sellers, or dealer

One of the factors that influences the price of buying a used car is capitalized cost.

TRUE

When attempting to determine the true price of a new car, it is best not to mention a trade-in vehicle until the cost of the new car has been settled.

TRUE

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

The dealer

To prevent confusion in determining the true price of the new car, you should not mention which of the following until the cost of the new car has been settled?

The existence of a trade-in vehicle

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.

Social factors that affect your buying habits include peer pressure, culture, and inflation.

FALSE

A(n) ______ warranty covers a product's intended use or other basic understandings that are not in writing.

implied

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

Blank 1: authority, power, or ability

The advantage of ____________ preowned vehicles is that there is a rigorous inspection and the original manufacturer's guarantee of quality.

Blank 1: certified

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

Blank 1: costs, expense, expenses, or cost

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

Blank 1: depreciation

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?

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

Which of the following is an agreement between a business and a consumer to cover repair costs of a product in return for a fee?

Extended warranty or service contract

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

*demand for the model *features and options *number of miles *condition

Which of the following is NOT true?

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

Service contracts and extended warranties are usually a wise purchase because they cover almost anything that could go wrong with the product.

FALSE

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

Price of accessories

What should you look for when inspecting the ENGINE of a used car for a possible purchase?

Smooth, clean start Evidence of leakage of fluids

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

Warranties offered by used-car dealers are usually limited

The advantage of certified preowned vehicles is that:

there is a rigorous inspection and the original manufacturer's guarantee of quality.

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

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

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

Blank 1: refund

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

Blank 1: unions or union

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.

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

Preshopping activities

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

Which of the following are drawbacks of leasing an automobile?

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

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

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

The law __________ protects car owners after four attempts to get the same problem corrected or when the vehicle is out of service for more than 30 days within ____________ months of purchase or within the first 12,000 miles. This answer applies to most states.

Blank 1: lemon Blank 2: 12 or twelve

Which of the following automobile costs are fixed ownership costs?

*Depreciation *Registration fees *Interest on car loans *Insurance

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

Blank 1: arbitration

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

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

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

dealer's cost

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

shipping or repairs.

Which of the following automobile costs are variable costs?

*Oil *Gas *Parking costs and tolls *Repairs

Buying which of the following items would be timing strategies for purchases that could save you money?

Buying winter clothes in late winter Buying summer clothes in late summer Buying holiday decorations in late December and early January

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

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