Question 1 of 20
Which of the following types of warranties is a specific agreement created by the seller or manufacturer?
A. Express B. Implied C. Full D. Limited
Question 2 of 20
Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of:
A. a stated intent of the seller. B. actions by consumers.
C. the intended use of a product. D. a written statement from the manufacturer.
Question 3 of 20
The major criticism of service contracts is:
A. poor service from repair companies. B. limited coverage of repairs.
C. weak government regulation of service contract companies.
D. high costs and a low chance of need.
Question 4 of 20
Most consumer complaints are resolved by:
A. legal action. B. assistance from a government agency.
C. contacting a company's headquarters. D. returning to the place of purchase.
Question 5 of 20
Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:
A. recommend reputable companies in an area.
B. resolve consumer complaints.
C. lobby for improved consumer protection laws.
D. evaluate products and services for quality.
Question 6 of 20
The process of resolving consumer complaints with the use of a third party who suggests a solution through discussion and negotiation is:
A. mediation. B. arbitration. C. a class action suit. D. the legal aid society.
Question 7 of 20
Arbitration differs from mediation in that arbitration:
A. involves government officials. B. requires the use of a lawyer.
C. is only available in certain states. D. is legally binding.
Question 8 of 20
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?
A. Small claims court B. Class action suit C. Legal aid society D. Arbitration
Question 9 of 20
Federal Trade Commission regulations require that:
A. all used cars be sold with a warranty.
B. used car buyers be informed if the vehicle comes with a warranty.
C. used cars over 100,000 miles cannot be sold.
D. major repairs must be made on all used cars offered for sale.
Question 10 of 20
__________ is considered a variable operating expense of an automobile.
A. Maintenance B. Depreciation C. Interest on auto loan D. Insurance
Question 11 of 20
Which of the following would be an advantage of leasing a vehicle?
A. Automatic ownership interest in the car B. Unlimited mileage on the car
C. No need to meet credit requirements
D. Lease payments are likely to be lower than finance payments
Question 12 of 20
A cost associated with home buying would be:
A. the security deposit. B. annual appreciation of the property.
C. property taxes. D. interest lost on the security deposit.
Question 13 of 20
XXXXX XXXXX plans to rent instead of buy her housing. What advantage of renting will Brenda encounter?
A.Tax advantages B. Lower initial costs C. Community pride D. Financial benefits
Question 14 of 20
A common financial benefit of home ownership is:
A. increased property value. B. a low security deposit.
C.tax deductibility of the down payment.D.amortization of the growth of equity.
Question 15 of 20
Which of the following would increase the amount that a person could afford to spend on a home?
A. Increased family income B. Increased interest rates
C. Decreased down payment D. High monthly living expenses
Question 16 of 20
What is prepaid interest charged by a mortgage company?
A. Escrow B. Points C. Origination fee D. Title fee
Question 17 of 20
Todd Foley is applying for a $100,000 mortgage. He can get a $600 monthly payment for principal and interest and no points, or a $520 monthly payment with 2 points? How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?
A. 6 B. 10 C. 18 D. 25
Question 18 of 20
Which of the following is an advantage of buying a home?
A. Mobility B. Tax benefits
C. Fewer responsibilities D. Minimal financial commitment
Question 19 of 20
A cost associated with renting would be:
A. property insurance. B. maintenance costs.
C. title insurance. D. security deposit.
Question 20 of 20
Which of the following is an example of a closing cost?
A. Origination fee B. Mortgage application fee
C. Earnest money D. Title insurance
Which of the following types of warranties is a specific agreement created by the seller or manufacturer?
A. Express B. Implied C. Full D. Limited
Question 2 of 20
Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a result of:
A. a stated intent of the seller. B. actions by consumers.
C. the intended use of a product. D. a written statement from the manufacturer.
Question 3 of 20
The major criticism of service contracts is:
A. poor service from repair companies. B. limited coverage of repairs.
C. weak government regulation of service contract companies.
D. high costs and a low chance of need.
Question 4 of 20
Most consumer complaints are resolved by:
A. legal action. B. assistance from a government agency.
C. contacting a company's headquarters. D. returning to the place of purchase.
Question 5 of 20
Pam McNally is planning to use the services of the Better Business Bureau. A major purpose of the BBB is to:
A. recommend reputable companies in an area.
B. resolve consumer complaints.
C. lobby for improved consumer protection laws.
D. evaluate products and services for quality.
Question 6 of 20
The process of resolving consumer complaints with the use of a third party who suggests a solution through discussion and negotiation is:
A. mediation. B. arbitration. C. a class action suit. D. the legal aid society.
Question 7 of 20
Arbitration differs from mediation in that arbitration:
A. involves government officials. B. requires the use of a lawyer.
C. is only available in certain states. D. is legally binding.
Question 8 of 20
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?
A. Small claims court B. Class action suit C. Legal aid society D. Arbitration
Question 9 of 20
Federal Trade Commission regulations require that:
A. all used cars be sold with a warranty.
B. used car buyers be informed if the vehicle comes with a warranty.
C. used cars over 100,000 miles cannot be sold.
D. major repairs must be made on all used cars offered for sale.
Question 10 of 20
__________ is considered a variable operating expense of an automobile.
A. Maintenance B. Depreciation C. Interest on auto loan D. Insurance
Question 11 of 20
Which of the following would be an advantage of leasing a vehicle?
A. Automatic ownership interest in the car B. Unlimited mileage on the car
C. No need to meet credit requirements
D. Lease payments are likely to be lower than finance payments
Question 12 of 20
A cost associated with home buying would be:
A. the security deposit. B. annual appreciation of the property.
C. property taxes. D. interest lost on the security deposit.
Question 13 of 20
XXXXX XXXXX plans to rent instead of buy her housing. What advantage of renting will Brenda encounter?
A.Tax advantages B. Lower initial costs C. Community pride D. Financial benefits
Question 14 of 20
A common financial benefit of home ownership is:
A. increased property value. B. a low security deposit.
C.tax deductibility of the down payment.D.amortization of the growth of equity.
Question 15 of 20
Which of the following would increase the amount that a person could afford to spend on a home?
A. Increased family income B. Increased interest rates
C. Decreased down payment D. High monthly living expenses
Question 16 of 20
What is prepaid interest charged by a mortgage company?
A. Escrow B. Points C. Origination fee D. Title fee
Question 17 of 20
Todd Foley is applying for a $100,000 mortgage. He can get a $600 monthly payment for principal and interest and no points, or a $520 monthly payment with 2 points? How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?
A. 6 B. 10 C. 18 D. 25
Question 18 of 20
Which of the following is an advantage of buying a home?
A. Mobility B. Tax benefits
C. Fewer responsibilities D. Minimal financial commitment
Question 19 of 20
A cost associated with renting would be:
A. property insurance. B. maintenance costs.
C. title insurance. D. security deposit.
Question 20 of 20
Which of the following is an example of a closing cost?
A. Origination fee B. Mortgage application fee
C. Earnest money D. Title insurance
