Chapter 15 Review

MC This occurs when consumers are given false information in an effort to make a sale. (a) theft (b) graft (c) fraud (d) larceny. C

True or False Consumers pay product testing organizations such as Underwriters Laboratories to test products and services. False

MC Which of the following is NOT a government agency that supplies consumer information? (a) National Highway Traffic Safety Administration (b) Association of Home Appliance Manufacturers (c) Food and Drug Administration (d) Federal Trade Commission. B

T or F Advertisements are a completely unhelpful source of information about products. F

MC This federal agency has the power to set safety standards and ban or recall hazardous products. (a) Consumer Product Safety Commission (b) Consumers Union (c) Better Business Bureau (d) all of the above have this power. A

T or F Store brand products often offer quality equal to national brand products. T

MC This product testing organization publishes a monthly magazine called Consumer Reports. (a) Underwriters Laboratories (b) Better Business Bureau (c) Consumer Product Safety Commission (d) Consumers Union. D

T or F One of the main activities of the Food and Drug Administration is to prevent one firm from using unfair practices to force competitors out of business. F

T or F In the U.S., telemarketing is the number one source of fraudulent offers to consumers. F

MC A promise by a manufacturer or dealer that a product is of a certain quality is called a (a) pledge (b) claim (c) guarantee (d) title. C

T or F If you have a complaint against a business, the first thing you should do is to contact the place of purchase. T

T or F The right to service means that a business can never refuse to make a sale to a customer under almost any circumstances. F

MC Product labels can tell consumers (a) the product content (b) what the product is made of (c) how to care for the product (d) all of the above. D

T or F The first step in the purchase decision making process is to know the available choices. F

T or F Online information has become a very valuable resource for consumers. T

MC A no-frills outlet retailer that often emphasizes the sale of large quantities at reasonable prices is a (a) warehouse club (b) factory outlet (c) superstore (d) specialty store. A

T of F Products displayed near cash registers are often purchased by impulse buyers. T

MC This federal agency has the power to set safety standards and ban or recall hazardous products. (a) Consumer Product Safety Commission (b) Consumers Union (c) Better Business Bureau (d) all of the above have this power. A

MC A legal action by one party on behalf of a group of people who all have the same grievance is (a) mediation (b) negotiation (c) a class- action suit (d) arbitration. C

MC If you complain about an unsatisfactory purchase by writing an angry letter to the store clerk threatening to have her fired, you are violating the consumer responsibility of (a) being active (b) being reasonable (c) being honest (d) all of the above. B

MC A no-frills outlet retailer that often emphasizes the sale of large quantities at reasonable prices is a (a) warehouse club (b) factory outlet (c) superstore (d) specialty store. A

Know the definitions of the following: Clearance sale Supermarket Convenience store Evaluate alternatives (decision making steps) Department store Make decision (decision making steps) Promotional sale Identify needs and wants (decision making steps) Determine desired satisfaction (decision making steps) Discount store

Fill in the blank The _________ can provide helpful information about businesses to consumers Because of the consumer movement, President John F. Kennedy created a Consumer ______ ___ _____ describing what every consumer can expect from a business. A(n) ____ warranty is a product guarantee made orally or in writing; a(n) _____ warranty is imposed by law and applies even if it has not been stated. Advertising is largely regulated in the U.S. by the ____ _____ _____. Comparison shoppers compare ___, ___, ___, and ___ of products. Price, quality, services, brands Express, implied Better business bureau Bill of rights Federal trade commission

Study Guide Test Questions Please make sure you also study the study guide. Five agree or disagree (Part One) Five matching (Part Two) Five identifying the government agency (Part Three)