Chapter 08 – Consumer Purchasing Strategies and Legal Protection
1. (p. 260) The first phase in the buying process involves information gathering.
2. (p. 261) Advertising is a type of consumer information commonly provided by business
organizations.
3. (p. 261) Several federal government agencies publish materials to assist consumers with
buying decisions and financial planning.
4. (p. 254) The most consistent quality is usually found with nationally known, brand-name
products.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
5. (p. 255) Open dating information provides consumers with information about product
freshness.
6. (p. 258) An implied warranty is usually in written form.
7. (p. 259) Service contracts are usually included in the cost of appliances and other high-priced
items.
8. (p. 272) Mediation involves a legally binding decision by a third party to solve a consumer
complaint.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
9. (p. 273) Representation by a lawyer is usually required in small claims court.
10. (p. 273) A class action suit allows many people with the same complaint to take action as a
group.
11. (p. 253) A social factor that would influence a consumer’s buying decision would be the
hobbies and interests they have.
12. (p. 255) Unit pricing uses a standard unit of measurement to compare prices of packages of
different sizes.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
13. (p. 258) 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.
14. (p. 261) One way to gather information about a product is to use an independent testing
organization like Consumers Union.
15. (p. 253) An example of an economic buying influence would be:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
16. (p. 254) Which one of the following is the best example of a personal opportunity cost
associated with a consumer purchase?
17. (p. 260) The first phase of the consumer buying process is:
18. (p. 261) The most reliable source of product information is likely to come from:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
19. (p. 261) Which organization specializes in the testing of products for electrical and fire
safety?
20. (p. 261) The main purpose of Consumers Union is to:
21. (p. 254) A cooperative is designed to:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
22. (p. 254) ____________ 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.
23. (p. 254) Cooperatives are most commonly organized to sell:
24. (p. 254) Impulse buying refers to:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
25. (p. 254) The items produced for a single retail chain are commonly sold under a
____________ brand.
26. (p. 255) Which of the following information is required on food labels?
27. (p. 254) Private label products are those that:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
28. (p. 255) Open dating provides information on:
29. (p. 255) A 32-ounce package selling for $1.60 would have a unit price of:
30. (p. 259) Which one of the following is not a common consumer myth?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
31. (p. 258) What type of warranty indicates that the seller has the right to sell a product?
32. (p. 258) Howard Ramsell recently became aware of implied warranties that exist for
consumer purchases. An implied warranty exists as a result of:
33. (p. 259) Which one of these statements best describes the major criticism of service
contracts?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
34. (p. 259) The purpose of a service contract is to:
35. (p. 269) Most consumer complaints are resolved by:
36. (p. 272) Pam McNally is planning to use the services of the Better Business Bureau. A major
purpose of the BBB is to:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
37. (p. 272) The process of resolving consumer complaints with the use of a third party whose
recommendations are non-binding is called:
38. (p. 272) ____________ is the settlement of a difference by a third party whose decision is
legally binding.
39. (p. 272) Arbitration differs from mediation in that arbitration:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
40. (p. 273) The purpose of small claims court is to:
41. (p. 273) Small claims courts:
42. (p. 273) Recently, Jim Dahl was on a bus tour in a mountainous 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?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
43. (p. 273) For a class action suit to be valid, it must:
44. (p. 274) Which of the following statements about the Legal Aid Society is not true?
45. (p. 262) When buying an automobile, the best warranties are usually offered by a(an):
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
46. (p. 258) Federal Trade Commission regulations require that:
47. (p. 258) An implied warranty that comes with a used car is that:
48. (p. 258) A vehicle sold “as is” has:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
49. (p. 262) Most cars bought from private parties have:
50. (p. 264) The main purpose of the Edmund’s Guide is to:
51. (p. 264) The sticker price of a car refers to: