Chapter 08 – Consumer Purchasing Strategies and Legal Protection
52. (p. 264) The purpose of the invoice price is to inform customers of the:
53. (p. 259) The purpose of an automobile service contract is to:
54. (p. 264) A disadvantage of leasing an automobile would be the:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
55. (p. 264) Mike Jacobs is planning to lease an automobile. In an effort to minimize the price of
the vehicle being leased, Mike should compare the ____________ at different leasing
companies.
56. (p. 266) Which of the following is usually the largest fixed expense for a new vehicle?
57. (p. 266) ____________ is considered a variable operating expense of an automobile.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
58. (p. 253) Greg Rossman likes to play golf. This would be an example of a(n) _________
factor that influences his purchasing decision.
59. (p. 253) Paul Spoon has noticed that interest rates have risen in recent months. He is worried
that this may make it more difficult for him to finance the purchase of a car. This would be an
example of a(n) ________ factor that influences his purchasing decision.
60. (p. 254) The Sears Kenmore dishwasher is an example of a:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
61. (p. 254) A Whirlpool dishwasher is an example of a:
62. (p. 256) Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the
product she just purchased that allows her to get part of her purchase price back. What is she
most likely using?
63. (p. 256) 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?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
64. (p. 258) Brad Hayden has a piece of paper that guarantees the conditions, under which he can
return, replace, or repair an item that he has purchased. What is it he most likely has?
65. (p. 254) Stephanie Johns is a member in a store that is a nonprofit organization that buys
grocery items in bulk. Members can save a considerable amount on the groceries they
purchase in the store. Stephanie is most likely shopping in which type of store?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
66. (p. 260) Gina Raffetto’s car broke down on the way to work and her mechanic has told her
that the car cannot be fixed. Gina drives 30 miles one way to work each day. There is no
reliable bus or train transportation that goes anywhere near her work. Gina decides she needs
a car for reliable transportation to work. What step in the purchasing process is Gina carrying
out?
67. (p. 260) Hector Ramirez has decided he needs a new car so that he has reliable transportation
to work. He is getting recommendations from his friends as to what might be a good car to
purchase. He is also looking at the Consumer Reports magazine to determine what they
recommend as a safe, low maintenance car and he has searched some web sites on the internet
as well. What step in the purchasing process is Hector carrying out?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
68. (p. 260) Sally Nash has decided she needs a new car. After doing some research, she has
settled on a midsized four door sedan. She likes the Honda Accord and is exploring the
features she needs and wants on this car. She is also trying to decide whether she would be
better off purchasing a new car, a used car, or leasing a car. She knows that if she purchases it
new it would likely last her for many, many years. On the other hand a used car would be a lot
cheaper. She is not sure a lease is for her because of the mileage requirements. What step in
the purchasing process is Sally carrying out?
69. (p. 260) Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that
the suggested retail price is $22,200 and that the dealer’s invoice price is $19,980. It is time
for him to go to a dealer and negotiate the price he will pay for his new car. What step in the
purchasing process is Lorenzo carrying out?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
70. (p. 260) Damian Walker just purchased a new vehicle. He is reading his owner’s manual to
know when he needs to take it in for its regular servicing at the dealer. He wants to make sure
this car lasts a while. What step in the purchasing process is Damian carrying out?
71. (p. 264) Which of the following would be an advantage of leasing a vehicle?
72. (p. 264) The price that is paid for a vehicle in a lease is called the:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
73. (p. 266) Tiffany Parrish has purchased a new car. Since then she has had to make six trips to
the dealer in four weeks to fix several major problems without much luck. She knows that she
is entitled to a refund. What type of law gives her the right to ask for a refund?
74. (p. 254) An online buying club requires an annual fee of $60 in order to qualify for a 15
percent discount on purchases. What amount would a person have to buy in order to save
enough to cover the cost of the membership?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
75. (p. 266) A credit purchase with 24 monthly payments of $78 and a down payment of $120
would have a total cost of:
76. (p. 256) Isabel would spend $200 per week on groceries for her family if she did not use
coupons. Her coupons save her 10 percent of that amount. She puts the amount saved into her
savings account. How much will she have in her savings account at the end of the first year?
Ignore interest earnings.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
77. (p. 266) A motor vehicle has annual depreciation of $2,000; oil changes cost $120,
automobile insurance $500 annually, and license plates costs $100. What is the annual amount
of the total fixed operating cost for this vehicle?
78. (p. 263) Emily is trying to decide whether to lease or buy a car. Which one of the following
is not a factor necessary in making the comparison?
79. (p. 267) Regular vehicle maintenance is essential to extending the life of your car. Engine oil
should be changed approximately every ____ months or _______ miles.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
80. (p. 269) A high tech scam that uses spam or pop-up messages to deceive you into revealing
your credit card number, bank account information, social security number, passwords, or
other sensitive information is called:
81. (p. 254) Which of the following is least likely to affect the timing of purchases to help you
obtain bargains?
82. (p. 265) Sloane owes $2,600 on her car loan. According to Edmonds Used Car Prices, her
car is valued at $1,950. The term used to refer to this situation is:
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
83. (p. 253) What factors influence most people’s buying decisions?
84. (p. 261) What are the main sources of consumer information?
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
85. (p. 269-274) Steve Franklin recently purchased a stereo system. After a few weeks it
overheated, causing a small fire and some minor damage. What actions would you
recommend to Steve to resolve his consumer complaint? What legal actions might Steve
consider for this situation?
86. (p. 273-275) What legal actions are available when assistance is needed to resolve a consumer
problem?
87. (p. 258) Distinguish between an implied warranty and an express warranty.
Chapter 08 – Consumer Purchasing Strategies and Legal Protection
88. (p. 272) Explain the difference between arbitration and mediation.
89. (p. 259) Describe four common consumer myths and explain the dangers of such erroneous
beliefs. Why do you think they continue to be believed by many consumers? Offer
suggestions for ways to increase consumer awareness of such myths.