TF The opportunity costs associated with credit consumer purchases refer to the cost of an item plus any finance charges. False
TF The first step in the buying process involves information gathering. False
TF Consumers Union is a government agency that tests products for safety. False
TF The most consistent quality is usually found with nationally known, brand-name products. True
TF A limited warranty covers all aspects of the product and does not require the buyer to incur any of the costs for shipping and repairs. False
TF Store-brand products are usually inferior in quality compared to national and store-brand items. False
TF An implied warranty is usually in written form. False
TF Service contracts are usually included in the cost of appliances and other high-priced items. False
TF Many consumer complaints are the result of poorly manufactured products. True
TF Most consumer complaints need legal action to be resolved. False
TF Mediation involves a legally binding decision by a third party to solve a consumer complaint. False
TF Representation by a lawyer is usually required in small claims court. False
TF A class action suit allows many people with the same complaint to take action as a group. True
TF Prepaid legal services are programs designed to provide unlimited or reduced-fee legal assistance for a set fee. True
An example of an economic buying influence would be Inflation
A personal opportunity cost associated with a consumer purchase refers to time used to compare prices.
The first step of the consumer buying process is Identifying the problem
Which organization has the purpose of testing products for electrical and fire safety? Underwriters Laboratories
Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get a dollar off the cost of that item. What is he most likely using? A Coupon
The main purpose of Consumers Union is to Evaluate the quality of products and services.
Which of the following would be an advantage of leasing a vehicle? Lease payments are likely to be lower than finance payments.
A motor vehicle has annual depreciation of $2,000, oil changes cost $120, automobile insurance $500, and $100 for license plates. What is the annual amount of the total fixed cost for this vehicle? $2,600
A cooperative is designed to Sell products or services to members at reduced prices.
____________ are non-profit stores created by people in a neighborhood to serve their customers, who are also called members. Prices at this type of store are usually lower than at other retailers. Coorperatives
Cooperatives are most commonly organized to sell Food
Which of the following information is required on food labels Common Product Name
Private label products are those that are sold by one chain of stores.
Opening dating provides information on Freshness.
A 32-ounce package selling for $1.60 would have a unit price of 5 cents an ounce
The sticker price of a car refers to The suggested retail price of a new car.
Which of the following types of warranties is a specific agreement created by the seller or manufacturer? Express
Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of The intended use of a product
The major criticism of service contracts is High costs and significant exclusions
The purpose of a service contract is to Protect a product owned from expensive repairs.
Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to Resolve consumer complaints
A federal government agency designed to provide consumer information and assist with consumer complaints is the Federal Trade Commission
The process of resolving consumer complaints with the use of a third party who suggests a solution through discussion and negotiation is Mediation
____________ is the settlement of a difference by a third party whose decision is legally binding. Arbitration
The purpose of small claims court is to resolve minor consumer complaints.
Small claims court requires a person to have a case involving less than a set amount.
Recently, Jim Dahl was on a bus tour in a mountain area. The bus broke down forcing the group to stay overnight. Group members had to pay for their own hotel bills. Jim believes that the hotel cost for the group should be paid by the tour company. Which legal action would be most appropriate? Class action suit
Which of the following legal techniques best serves low-income consumers? legal aid societies
Federal Trade Commission regulations require that used car buyers be informed if the vehicle comes with a warranty.
An implied warranty that comes with a used car is that the vehicle must be in operating condition.
Most cars bought from private parties have No express Warranty
The purpose of the Edmund’s Guide is to Provide Price Data
The purpose of an automobile service contract is to repair major problems after the warranty expires
Mike Jocobs is planning to lease an automobile. In an effort to minimize the leasing price of the vehicle, Mike should compare the ____________ at different leasing companies. Money Factor
Which of the following is usually the largest fixed expense for a new vehicle? Depreciation

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