Question 1

The best place to find a qualified lawyer who will meet your specific needs is a phone book.

Accepted Answer

While the phone book may list lawyers in your area, it is not the best place to find a qualified lawyer who will meet your specific needs. It is recommended to research and consult with multiple lawyers, read reviews, and ask for referrals from trusted sources to find the right lawyer for your situation.

Question 2

Advantages of a lease over a purchase include that the buyer can usually obtain a more expensive vehicle and the monthly lease payments are usually lower than monthly financing payments.

Accepted Answer

This statement is true, as leasing allows for lower monthly payments and the ability to drive a more expensive vehicle than what may be feasible through traditional financing.

Question 3

A lawyer is necessary when you appear in small claims court.

Accepted Answer

While a lawyer can represent you in small claims court, it is not a requirement. Small claims court is designed to be accessible for individuals without legal representation, and many people choose to represent themselves in these cases.

Question 4

Small claims court is used to take legal action by a few individuals on behalf of all who have suffered the same alleged injustice.

Accepted Answer

Small claims court is designed for individuals to bring claims against others for personal or financial harm they have suffered, and the claims are typically limited to a relatively small amount. It is not used to represent a group of people who have suffered the same alleged injustice.

Question 5

In determining the purchase price of a new car, a trade-in vehicle should NOT be mentioned until the cost of the new car has been settled.

Accepted Answer

It is recommended to negotiate the price of the new car separately from the trade-in value of the current vehicle. Otherwise, the dealership may use the trade-in value as a way to manipulate the overall price of the transaction.

Question 6

Joe bought some cheese at his local grocery store. After he brought it home, he noticed it was moldy even though the expiration date was still three weeks away. First, he should contact the original sales location. If not resolved there, then he should call the toll-free hotline number printed on the package to tell the company about the problem he encountered.

Accepted Answer

It is recommended to first contact the original sales location and then call the company's hotline number to report any issues with a product.

Question 7

One of the common sources to find a qualified lawyer who will meet your specific needs is referrals from friends.

Accepted Answer

Referrals from friends can be a reliable source to find a qualified lawyer who has already been recommended by someone you know and trust.

Question 8

If you are somewhat interested in a specific vehicle, you should provide a small deposit so the car seller will hold the vehicle for you.

Accepted Answer

Providing a deposit without a firm commitment to purchase can lead to complications, such as losing the deposit if you decide not to buy the vehicle. It's better to negotiate terms and ensure you're ready to commit before providing any deposit.

Question 9

The settlement of a difference between two parties by an arbitrator is legally binding.

Accepted Answer

When parties agree to arbitration, they typically sign an agreement stating that they will accept the decision of the arbitrator as final and binding. This means that they agree in advance to abide by the decision and to waive their right to take the matter to court. Therefore, the settlement reached by an arbitrator is legally binding.

Question 10

People do not anticipate problems with purchases but should be prepared for them.

Accepted Answer

It is always a good idea to be prepared for problems with purchases, as unexpected issues can arise even with the most carefully planned purchases. Being prepared can help individuals address these problems quickly and effectively, minimizing any negative impact on their finances or overall satisfaction with their purchase.

Question 11

The largest fixed expense associated with a new automobile is depreciation.

Accepted Answer

Depreciation is the decrease in value of an asset over time, and it is a significant factor that affects the overall cost of owning a new automobile. As soon as a new car is driven off the lot, it starts to lose value, and this depreciation continues until the car reaches the end of its useful life. Therefore, the largest fixed expense associated with a new automobile is depreciation.

Question 12

The settlement of a difference between two parties through discussion and negotiation by a mediator is legally binding.

Accepted Answer

While the mediator can assist in finding a mutually agreeable solution, the settlement must be agreed upon and signed by both parties to be legally binding.

Question 13

If you have a problem with a product, the first place you should express your dissatisfaction to is the corporate headquarters.

Accepted Answer

The first place you should express your dissatisfaction to is the company's customer service department or the store where you purchased the product. They may be able to offer a solution or connect you with the appropriate department to address your concerns. Only after exhausting those options should you contact the corporate headquarters.

Question 14

Tracy went to a local restaurant and became ill from the meal she ate. She can contact her city or county health department to handle problems with the restaurant.

Accepted Answer

Tracy can contact her city or county health department as they are responsible for monitoring and ensuring compliance with food safety regulations in local restaurants.

Question 15

If you have a problem with a product and you are talking with a customer service person, you should raise your voice and demand unreasonable action during your conversation.

Accepted Answer

It is not appropriate to raise your voice or demand unreasonable action from a customer service person. It is important to remain calm, explain the issue clearly, and work together to find a solution. Being rude or demanding will not help resolve the problem and may actually hinder the process.

Question 16

Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.

Accepted Answer

The answer of Lemon laws have been enacted in 48...

Question 17

Studies of consumer problems consistently rank auto repairs as one of the best consumer services with few consumer complaints.

Accepted Answer

Auto repairs are actually one of the consumer services with the highest number of complaints, according to various studies and surveys conducted by organizations such as the Consumer Federation of America and the Better Business Bureau. Common complaints include the quality of repairs, pricing, and customer service.

Question 18

A lease for a car is typically for three to five years.

Accepted Answer

A typical car lease contract is for a period of three to five years.

Question 19

In comparing used vehicles, a vehicle that looks rusty on the outside may hide a well-maintained engine.

Accepted Answer

The appearance of rust on the outside of a vehicle does not necessarily indicate the condition of the engine or other mechanical components. It is possible for a vehicle to have a well-maintained engine despite some visible rust on the exterior. Therefore, it is important to inspect the vehicle thoroughly, including under the hood, and to obtain a vehicle history report before making a purchasing decision.

Question 20

One of the first steps in a new car purchase negotiation should be a discussion of the trade-in vehicle.

Accepted Answer

The first steps should focus on negotiating the price of the new car before discussing the trade-in vehicle, to ensure clear and separate negotiations for each transaction.

Quiz 6: Consumer Purchasing Strategies and Wise Buying of Motor Vehicles