Focus On Personal Finance An Active Approach To Help You Develop Successful Financial Skills 4th Edition Kapoor Test Bank Download

Focus on Personal Finance An Active Approach to
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Chapter 06
Consumer Purchasing Strategies and Wise Buying of Motor Vehicles
True / False Questions
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
1. The only way that you can have long-term financial security is to not save all of your current
income.
True False
2. Abigail checked out brands and prices of blue jeans at several stores. She was impulse
shopping.
True False
3. Abigail checked out brands and prices of blue jeans at several stores. She was comparison
shopping.
True False
4. Cam has an overwhelming desire to buy things whenever he goes shopping. One could say
that he is a compulsive shopper.
True False
5. One of the best ways to compare packaged food products is to use rebate pricing.
True False
6. Prices at the local quick market (convenience store) will probably be lower than at the
regional big box retailer (grocery store).
True False
7. Thomas bought a toaster that would not toast bread, and he returned it. The manufacturer
accepted the return because it was defective and came with a full warranty.
True False
8. Thomas bought a vehicle from a used car dealer. He returned it to the dealer because the
transmission fell out 150 miles after he purchased it. The dealer refused to accept the return
because the vehicle was sold "as is." This is an example of a limited warranty.
True False
9. A service contract is frequently called an extended warranty even though service contracts
are not warranties.
True False
10. Service contracts on vehicles usually are wise financial decisions.
True False
11. An example of a "preshopping activity" is negotiating the price of a product.
True False
12. The phases of buying are problem identification, preshopping activities, evaluating
alternatives, selection and purchase, and postpurchase activities.
True False
13. A clear statement of a problem is "I need to have a car."
True False
14. A convenience option that consumers may look for in a vehicle is special trim.
True False
15. An aesthetic feature of a vehicle is air conditioning.
True False
16. A vehicle that looks rusty on the outside will have major operational problems.
True False
17. A vehicle that looks rusty on the outside may hide a well-maintained engine.
True False
18. A lease for a car is typically for three to five years.
True False
19. An advantage of a lease over a purchase is that the buyer can usually obtain a more
expensive vehicle for the same monthly payment.
True False
20. One of the first steps in a car purchase negotiation should be a discussion of the trade-in
vehicle.
True False
21. A trade-in vehicle should NOT be mentioned until the cost of a new car has been settled.
True False
22. 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.
True False
23. Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.
True False
24. The largest fixed expense associated with a new automobile is depreciation.
True False
25. Studies of consumer problems consistently rank auto repairs as one of the best consumer
services with few consumer complaints.
True False
26. People do not anticipate problems with purchases but should be prepared for them.
True False
27. If you have a problem with a product and you really want to get the attention of someone in
customer service, you should raise your voice during your conversation.
True False
28. If you have a problem with a product, the first place you should express your dissatisfaction
to is the corporate headquarters.
True False
29. 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. He should call the toll-free
hotline number printed on the package to tell the company about the problem he
encountered.
True False
30. The settlement of a difference by a mediator is legally binding.
True False
31. The settlement of a difference by an arbitrator is legally binding.
True False
32. 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.
True False
33. Small claims court is used to take legal action by a few individuals on behalf of all who have
suffered the same alleged injustice.
True False
34. The best place to find a qualified lawyer who will meet your specific needs is a phone book.
True False
35. One of the best places to find a qualified lawyer who will meet your specific needs is referrals
from friends.
True False
36. A good time to use a lawyer is when you appear in small claims court.
True False
37. The best time to ask a lawyer about his fees is after he wins a case for you.
True False
Multiple Choice Questions
38. When Jane researched the brands and prices of refrigerators, she was
A. Comparison shopping.
B. Compulsive shopping.
C. Impulse shopping.
D. Trade-off shopping.
E. Warranty shopping.
39. While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought
it. This is an example of
40. Jacob drives by a Big Box home improvement center on his way home from work. He usually
stops and buys something because it makes him feel good. Jacob is
41. Which of the following is NOT a strategy for wise buying?
A. Buying winter clothes on sale in mid- or late winter
B. Researching the prices and choices for purchases
C. Buying items on impulse
D. Carefully considering buying alternatives
E. Using unit pricing to compare products
42. These products are highly advertised and available at many stores.
A. Private-label brands
B. Store brands
C. National brands
D. Regional brands
E. Generic items
43. These products are sold by one chain of stores and are low-cost alternatives to famous-name
products.
A. Private-label brands.
B. Store brands.
C. National brands.
D. Private-label or store brands.
E. All of these are correct.
44. A standard measurement used to compare packages of different sizes is
A. Coupons.
B. Open dating.
C. Rebates.
D. Unit pricing.
E. Warranty.
45. This type of promotion provides an immediate savings for consumers.
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
46. This shopping label is used primarily on perishable products.
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
47. Partial refunds of the price of a product are called
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
48. This is a written guarantee from the manufacturer that specifies the conditions under which
the product can be returned, replaced, or repaired.
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
49. Most products come with some guarantee of quality. Which of the following is usually in
written form, created by the seller or manufacturer, and has two forms?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
50. Most products come with some guarantee of quality. This type of warranty states that a
defective product can be fixed or replaced during a reasonable amount of time.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
51. Most products come with some guarantee of quality. This type of warranty covers only
certain aspects of the product, such as parts.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
52. Most products come with some guarantee of quality. This type of warranty covers the
product's intended use or other basic understandings that are not in writing.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
53. Steve bought a laptop that was defective. This laptop will be fixed or replaced by the
manufacturer as long as he returns it in a reasonable amount of time. What type of warranty
does he have on his laptop?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
54. Frank bought some miniblinds. Although he did not receive a written warranty, the blinds
should be expected to open and close properly. What kind of warranty does Frank have?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
55. Karen bought a mixer. She received a warranty that covers only certain aspects of the
product. If the product fails, she may be required to pay part of the costs for shipping or
repairs. Which of the following warranties does she have?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
56. Mike bought a new car. His new car warranty probably included all of the following except
A. Coverage of basic parts against defects.
B. Corrosion warranty.
C. Extended coverage for air conditioning.
D. Possibility to transfer the warranty to other owners of the car (additional charges may
apply).
E. Power train coverage.
57. A service contract
A. Is better than an extended warranty.
B. Is an agreement to cover repair during the implied warranty period.
C. Is included automatically with the purchase of a vehicle.
D. Usually does not cover the engine cooling system.
E. Covers the repair costs of a product.
58. The text identifies several phases in the buying process. The correct order of the phases is
A. Evaluating alternatives, preshopping activities, selection and purchase, postpurchase

activities.
B. Preshopping activities, selection and purchase, evaluating alternatives, postpurchase

activities.
C. Preshopping activities, evaluating alternatives, selection and purchase, postpurchase

activities.
D. Postpurchase activities, evaluating alternatives, preshopping activities, selection and

purchase.
E. Evaluating alternatives, selection and purchase, preshopping activities, postpurchase

activities.
59. Problem identification is part of the ____ phase of the decision-making process.
A. evaluating alternatives
B. postpurchase activities
C. preshopping activities
D. selection and purchase
E. More than one of these is correct.
60. Information gathering is part of the ____ phase of the decision-making process.
E. ordering activities
61. Comparison of product features is part of the ____ phase of the decision-making process.
62. Price analysis is part of the ____ phase of the decision-making process.
63. Negotiation activities are part of the ____ phase of the decision-making process.
64. Choosing the payment method is part of the ____ phase of the decision-making process.
65. Properly maintaining and operating the product is part of the ____ phase of the decision-
making process.
66. Resolving purchase concerns is part of the ____ phase of the decision-making process.
67. Which of the following is the best way to state a problem?
A. I need to have a car.
B. I need transportation.
C. I need a motorcycle.
D. I need to have a minivan.
E. I need to have an SUV.
68. Which of the following sources would be the LEAST helpful when purchasing a vehicle?
A. Personal contacts to learn about product performance.
B. Media information with purchasing advice.
C. Independent testing organizations like Consumers Union.
D. Online sources with product information.
E. Your cousin who has never purchased a car.
69. All of the following are appropriate questions you could ask before making a major purchase
except
A. Is it possible to delay the purchase or to do without the item?
B. Should I pay for the item with cash or buy it on credit?
C. Which brands should I consider?
D. How do the price, quality, and service compare at different stores?
E. All of these are questions that should be asked.
70. Comparison shopping will be beneficial for buying all of the following except
A. A hot dog at the baseball park.
B. Milk and bread that you buy weekly.
C. A pet dog.
D. Musical instrument accessories that you purchase online.
E. An expensive television.
71. Comparison shopping will be beneficial for buying
A. Inexpensive items.
B. One-time purchases of low-cost products.
C. Products whose prices are the same at all retailers.
D. Products whose quality is the same at all retailers.
E. Items that can be researched easily with advertisements.
72. Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may
want to consider all of the following except
A. Mechanical devices to improve performance.
B. Convenience options such as air conditioning.
C. Aesthetic features like metallic paint.
D. All of these may be considered.
E. None of the items listed are important when buying a vehicle.
73. The average used car costs about _______ less than the average new car.
A. $0
B. $1,000
C. $10,000
D. $25,000
E. $50,000
74. When purchasing a used vehicle, it is a good idea to
A. Take out a loan for the entire cost.
B. Accept the dealer at his word about the condition of the vehicle.
C. Have a trained and trusted mechanic of your choice check out the vehicle.
D. All of these are correct.
E. None of these is correct.
75. Which of the following is an advantage of a car lease?
A. A large down payment is required.
B. At the end of the lease, you have no ownership interest in the vehicle.
C. The capitalized cost is usually higher than the list price.
D. Monthly lease payments are usually lower than monthly financing payments.
E. The total cost of a lease may be higher than a purchase.
76. Which of the following is a disadvantage of a car lease?
C. The capitalized cost is usually lower than the list price.
E. You can usually obtain a more expensive vehicle than with an outright purchase.
77. The amount printed on a label with the suggested retail price that is posted on a vehicle is
called the
A. Invoice price.
B. Sticker price.
C. Set price.
D. Capitalized cost.
E. Residual value.
78. The dealer's cost is also known as the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
79. A no-haggling dealer will use a(n)
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
80. The price of a leased vehicle is known as the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
81. The expected value of a vehicle at the end of a lease is called the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
82. Izzy is thinking about leasing a sports car. She will make monthly payments based on a
money factor and the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
83. Helga plans to purchase a pickup truck. She should begin her price negotiation at the
A. Invoice price.
B. Money factor.
C. Set price.
E. Residual value.
84. A vehicle lease has several costs. Which of the following is the price of the vehicle?
A. Capitalized cost.
B. Money factor.
C. Payment schedule.
D. Residual value.
E. All of these.
85. A vehicle lease has several costs. Which of the following is the interest rate used to calculate
the monthly cost?
B. Money factor.
D. Residual value.
E. All of these.
86. A vehicle lease has several costs. Which of the following is the amount paid monthly?
A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. Trade-in value
87. A vehicle lease has several costs. Which of the following is the expected value at the end of
the lease?
A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. Trade-in value
88. Which of the following is a cost associated with a vehicle lease?
B. Money factor.
C. Payment amount.
D. Residual value.
E. All of these.
89. George has never bought a car before. Which of the following techniques should he use to
get the best deal?
A. Lowballing
B. Highballing
C. Leave a deposit to hold the vehicle
D. Research the actual dealer cost and begin negotiations from that point
E. Tell the dealer the highest monthly payment he can afford
90. A potential problem with having a long car loan is
A. Low monthly payments.
B. Low-interest loan.
C. Negative equity.
D. Loan preapproval.
E. All of these are potential problems.
91. Which of the following is correct about the lemon law?
A. It applies when a vehicle has been out of service for 60 days.
B. It was enacted in 45 of the 50 states.
C. It requires a refund for the vehicle after the owner has made repeated attempts to obtain
financing.
D. It applies to vehicles that have been serviced four times to correct the same problem in
the first 12,000 miles.
E. It applies to both new and used vehicle purchases.
92. A variable operating cost for a vehicle is
A. Depreciation.
B. Insurance.
C. Interest on an auto loan.
D. License and registration.
E. Maintenance and repairs.
93. All of the following are fixed operating costs for a vehicle except
A. Depreciation.
B. Insurance.
94. A fixed operating cost for a vehicle is
A. Depreciation.
B. Gasoline and oil.
C. Maintenance and repairs.
D. Parking.
E. Tires.
95. All of the following are variable operating costs for a vehicle except
A. Depreciation.
D. Parking.
E. Tires.
96. The largest fixed expense associated with a new automobile is
A. Depreciation.
B. Insurance.
97. Which of the following costs will increase directly with the number of miles driven?
A. Depreciation
B. Gasoline
C. Insurance
D. Interest on an auto loan
E. License and registration
98. Craig wants to get his old car repaired, but he doesn't want to spend much money. He
probably will NOT want to go to a
A. Car dealer.
B. Independent auto repair shop.
C. Mass merchandise retailer.
D. Service station.
E. Specialty shop.
99. Most customer complaints result from the all of the following except
A. Deceptive pricing.
B. Defective products.
C. Long product lives.
D. Low-quality products.
E. Unexpected costs.
100.Paul bought some bad gasoline that damaged the gas tank of his vehicle.
A. He should sue the gas station where he bought his gas.
B. He never should have expected any problems with buying any product, especially gas for
his car.
C. He should provide the gas station with documentation of his purchase and all repair costs.
D. He should assume that the gas station should be able to track his purchase based on
video cameras.
101.Think about consumer complaints. Which of the following is correct?
A. The first step is to contact the company headquarters.
B. If you don't get satisfaction from the local store, you should take legal action as the next
step.
C. An arbitrator will provide a nonbinding process to settle your differences.
D. If you don't get satisfaction from working with the company headquarters, you may get
assistance from a mediator in order to avoid legal action.
102.A process used to settle grievances in a nonbinding process is called a(n)
A. Arbitration.
B. County health department.
C. Lawsuit.
D. Mediation.
E. Two of these are correct.
103.Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital.
The problems at the restaurant should be handled by
A. Arbitration.
B. The county health department.
C. A lawsuit.
D. Mediation.
E. The doctor who treated her.
104.Which of the following is not a legal option for upper-income consumers?
A. Class action lawsuits
B. A lawyer
C. A legal aid society
D. Prepaid legal services
E. Small claims court
105.Sally has a major problem with a product and thinks that many others have had the same
problem. Which of the following is the best way to resolve the problem?
A. Class action lawsuit
B. A lawyer
D. Prepaid legal service
106.Steven needs to write a will. His best resource is (a)
A. Class action lawsuit.
B. Lawyer.
C. Legal aid society.
D. Prepaid legal service.
E. Small claims court.
107.Adolph has a low income and needs legal assistance. He should make use of (a)
B. Lawyer.
D. Prepaid legal services.
108.If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use
(a)
B. Lawyer.
109.If you have a problem whose remedy will be $1,500-$3,000, the appropriate tool to use would
be (a)
A. Class-action lawsuit.
B. Lawyer.
110.The unit price of a two-pound (32-ounce) box of brown sugar that costs $3.20 is
A. $0.10 per ounce.
B. $0.10 per pound.
C. $1.60 per ounce.
D. $3.20 per pound.
E. $6.40 per pound.
111.The unit price of a 64-ounce carton of orange juice that costs $3.20 is
A. $0.05 per ounce.
B. $0.10 per ounce.
C. $0.20 per ounce.
D. $1.00 per ounce.
E. $3.20 per ounce.
112.Using the following information, what is the cost to buy a car?
A. $3,000.
B. $21,200.
C. $24,560.
D. $25,200.
E. $28,200.
113.Using the following information, what is the cost to lease a car?
A. $18,000
B. $18,530
C. $18,560
D. $18,830
E. $19,030
Essay Questions
114.Define two of the following:
a. Comparison shopping
b. Compulsive shopping
c. Impulse shopping
115.What is the difference between an express warranty and an implied warranty?
116.Why are service contracts for vehicles not a good deal?
117.What are three sources of information for buying decisions?
118.When choosing a vehicle, what are some categories and examples of optional equipment that
may be considered?
119.How is a lease different from a purchase?
120.Why is it a bad idea to mention the trade-in vehicle early in the purchase process?
121.What are three sales techniques that should be avoided when buying a car?
122.What are five factors that affect the operating costs of a vehicle?
123.Assume that you are completely dissatisfied with a purchase. What are the four steps in
order that you should take to resolve your problem?
124.What is the difference between mediation and arbitration?
Chapter 06 Consumer Purchasing Strategies and Wise Buying of
Motor Vehicles Answer Key
True / False Questions
1. The only way that you can have long-term financial security is to not save all of your
(p. 188) current income.
FALSE
The only way to have long-term financial security is to not SPEND all of your current
income.
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-01 Identify strategies for effective consumer buying.
Topic: Consumer Buying Activities
2. Abigail checked out brands and prices of blue jeans at several stores. She was impulse
(p. 188) shopping.
FALSE
She was comparison shopping.
Blooms: Understand
Difficulty: 1 Easy
3. Abigail checked out brands and prices of blue jeans at several stores. She was comparison
(p. 188) shopping.
TRUE
Blooms: Understand
Difficulty: 1 Easy
4. Cam has an overwhelming desire to buy things whenever he goes shopping. One could say
(p. 188) that he is a compulsive shopper.
TRUE
Blooms: Understand
Difficulty: 1 Easy
5. One of the best ways to compare packaged food products is to use rebate pricing.
(p. 188-
189)
FALSE
Price comparisons are made with unit pricing.
Blooms: Remember
Difficulty: 2 Medium
6. Prices at the local quick market (convenience store) will probably be lower than at the
(p. 188- regional big box retailer (grocery store).
189)
FALSE
Convenience stores usually have higher prices.
Blooms: Understand
7. Thomas bought a toaster that would not toast bread, and he returned it. The manufacturer
(p. 190) accepted the return because it was defective and came with a full warranty.
TRUE
Blooms: Understand
8. Thomas bought a vehicle from a used car dealer. He returned it to the dealer because the
(p. 190) transmission fell out 150 miles after he purchased it. The dealer refused to accept the
return because the vehicle was sold "as is." This is an example of a limited warranty.
FALSE
Since the vehicle was sold "as is," no warranty was offered.
Blooms: Understand
9. A service contract is frequently called an extended warranty even though service contracts
(p. 190) are not warranties.
TRUE
Blooms: Remember
Difficulty: 1 Easy
10. Service contracts on vehicles usually are wise financial decisions.

(p. 192)
FALSE
Because of costs and exclusions, service contracts may NOT be a wise financial decision.
Blooms: Understand
11. An example of a "preshopping activity" is negotiating the price of a product.

(p. 192)
FALSE
Negotiations are part of the selection and purchase phase of the buying process.
Blooms: Understand
12. The phases of buying are problem identification, preshopping activities, evaluating
(p. 192) alternatives, selection and purchase, and postpurchase activities.
FALSE
Problem identification is part of the "preshopping" activities and not one of the four
phases of buying.
Blooms: Remember
Difficulty: 1 Easy
13. A clear statement of a problem is "I need to have a car."

(p. 193)
FALSE
A better statement would be "I need transportation."
Blooms: Understand
Learning Objective: 06-02 Implement a process for making consumer purchases.
Topic: Major Consumer Purchases-Buying Motor Vehicles
14. A convenience option that consumers may look for in a vehicle is special trim.
(p. 196)
FALSE
Special trim is an aesthetic feature on a vehicle.
Blooms: Understand
15. An aesthetic feature of a vehicle is air conditioning.
(p. 196)
FALSE
Air conditioning is a convenience option.
Blooms: Understand
16. A vehicle that looks rusty on the outside will have major operational problems.
(p. 196)
FALSE
The appearance of a used car can be deceiving.
Blooms: Understand
17. A vehicle that looks rusty on the outside may hide a well-maintained engine.
(p. 196)
TRUE
Blooms: Understand
18. A lease for a car is typically for three to five years.
(p. 196)
TRUE
Blooms: Remember
Difficulty: 1 Easy
19. An advantage of a lease over a purchase is that the buyer can usually obtain a more
(p. 196) expensive vehicle for the same monthly payment.
TRUE
Blooms: Remember
20. One of the first steps in a car purchase negotiation should be a discussion of the trade-in
(p. 198) vehicle.
FALSE
A trade-in vehicle should NOT be mentioned until the cost of the new car has been
settled.
Blooms: Understand
21. A trade-in vehicle should NOT be mentioned until the cost of a new car has been settled.
(p. 198)
TRUE
Blooms: Understand
22. If you are somewhat interested in a specific vehicle, you should provide a small deposit so
(p. 198) the car seller will hold the vehicle for you.
FALSE
If you change your mind about the vehicle, you can lose your deposit; therefore, never
leave a deposit until you are ready to buy a vehicle.
Blooms: Understand
23. Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.
(p. 200)
FALSE
All 50 states and the District of Columbia have enacted lemon laws.
Blooms: Remember
24. The largest fixed expense associated with a new automobile is depreciation.
(p. 200)
TRUE
Blooms: Remember
Difficulty: 1 Easy
25. Studies of consumer problems consistently rank auto repairs as one of the best consumer
(p. 201) services with few consumer complaints.
FALSE
Studies have ranked auto repairs as one of the top consumer rip-offs.
Blooms: Remember
26. People do not anticipate problems with purchases but should be prepared for them.
(p. 202)
TRUE
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Describe steps to take to resolve consumer problems.
Topic: Resolving Consumer Complaints
27. If you have a problem with a product and you really want to get the attention of someone
(p. 202) in customer service, you should raise your voice during your conversation.
FALSE
You should use a calm, rational, persistent approach.
Blooms: Understand
Difficulty: 1 Easy
28. If you have a problem with a product, the first place you should express your
(p. 202) dissatisfaction to is the corporate headquarters.
FALSE
You should contact the corporate level if a problem is not resolved at the local store.
Blooms: Remember
29. Joe bought some cheese at his local grocery store. After he brought it home, he noticed it
(p. 202) was moldy even though the expiration date was still three weeks away. He should call the
toll-free hotline number printed on the package to tell the company about the problem he
encountered.
TRUE
Blooms: Understand
Difficulty: 3 Hard
30. The settlement of a difference by a mediator is legally binding.

(p. 203)
FALSE
The settlement by an arbitrator is legally binding. Mediation is a nonbinding process.
Blooms: Remember
31. The settlement of a difference by an arbitrator is legally binding.

(p. 203)
TRUE
Blooms: Remember
32. Tracy went to a local restaurant and became ill from the meal she ate. She can contact her
(p. 203) city or county health department to handle problems with the restaurant.
TRUE
Blooms: Understand
33. Small claims court is used to take legal action by a few individuals on behalf of all who
(p. 205) have suffered the same alleged injustice.
FALSE
Small claims court is for low-value claims. The legal action taken on behalf of others is a
class action suit.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 Evaluate legal alternatives available to consumers.
Topic: Legal Options for Consumers
34. The best place to find a qualified lawyer who will meet your specific needs is a phone
(p. 206) book.
FALSE
Common sources of lawyers are referrals from friends, advertisements, and the local
division of the American Bar Association.
Blooms: Remember
Difficulty: 1 Easy
35. One of the best places to find a qualified lawyer who will meet your specific needs is
(p. 206) referrals from friends.
TRUE
Blooms: Remember
Difficulty: 1 Easy
36. A good time to use a lawyer is when you appear in small claims court.
(p. 206)
FALSE
Lawyers are often used in more complicated matters. The small claims court process
usually takes place without a lawyer.
Blooms: Understand
37. The best time to ask a lawyer about his fees is after he wins a case for you.
(p. 206)
FALSE
You should ask about the fee structure and payments when you select the lawyer.
Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions
38. When Jane researched the brands and prices of refrigerators, she was
(p. 188-
190)
Blooms: Understand
39. While Paul was shopping for a new chainsaw, he found a great deal on a new drill and
(p. 188- bought it. This is an example of
190)
Blooms: Understand
40. Jacob drives by a Big Box home improvement center on his way home from work. He
(p. 188- usually stops and buys something because it makes him feel good. Jacob is
190)
Blooms: Understand
41. Which of the following is NOT a strategy for wise buying?
(p. 188-
190)
A. Buying winter clothes on sale in mid- or late winter
B. Researching the prices and choices for purchases
C. Buying items on impulse
D. Carefully considering buying alternatives
E. Using unit pricing to compare products
Blooms: Understand
42. These products are highly advertised and available at many stores.
(p. 189-
190)
A. Private-label brands
B. Store brands
C. National brands
D. Regional brands
E. Generic items
Blooms: Remember
43. These products are sold by one chain of stores and are low-cost alternatives to famous-
(p. 189- name products.
190)
A. Private-label brands.
B. Store brands.
C. National brands.
D. Private-label or store brands.
Blooms: Remember
44. A standard measurement used to compare packages of different sizes is

(p. 190)
A. Coupons.
B. Open dating.
C. Rebates.
D. Unit pricing.
E. Warranty.
Blooms: Remember
45. This type of promotion provides an immediate savings for consumers.
(p. 190)
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
Blooms: Remember
46. This shopping label is used primarily on perishable products.

(p. 190)
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
Blooms: Remember
47. Partial refunds of the price of a product are called
(p. 190)
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
Blooms: Remember
Difficulty: 1 Easy
48. This is a written guarantee from the manufacturer that specifies the conditions under
(p. 190) which the product can be returned, replaced, or repaired.
A. Coupons
B. Open dating
C. Rebates
D. Unit pricing
E. Warranty
Blooms: Remember
Difficulty: 1 Easy
49. Most products come with some guarantee of quality. Which of the following is usually in
(p. 190) written form, created by the seller or manufacturer, and has two forms?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Remember
Difficulty: 3 Hard
50. Most products come with some guarantee of quality. This type of warranty states that a
(p. 190) defective product can be fixed or replaced during a reasonable amount of time.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Remember
51. Most products come with some guarantee of quality. This type of warranty covers only
(p. 190) certain aspects of the product, such as parts.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Remember
52. Most products come with some guarantee of quality. This type of warranty covers the
(p. 190) product's intended use or other basic understandings that are not in writing.
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Remember
53. Steve bought a laptop that was defective. This laptop will be fixed or replaced by the
(p. 190) manufacturer as long as he returns it in a reasonable amount of time. What type of
warranty does he have on his laptop?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Understand
54. Frank bought some miniblinds. Although he did not receive a written warranty, the blinds
(p. 190) should be expected to open and close properly. What kind of warranty does Frank have?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Understand
55. Karen bought a mixer. She received a warranty that covers only certain aspects of the
(p. 190) product. If the product fails, she may be required to pay part of the costs for shipping or
repairs. Which of the following warranties does she have?
A. "As-is" warranty
B. Express warranty
C. Full warranty
D. Implied warranty
E. Limited warranty
Blooms: Understand
56. Mike bought a new car. His new car warranty probably included all of the following except
(p. 191)
A. Coverage of basic parts against defects.
B. Corrosion warranty.
C. Extended coverage for air conditioning.
D. Possibility to transfer the warranty to other owners of the car (additional charges may
apply).
E. Power train coverage.
Blooms: Understand
57. A service contract
(p. 192)
A. Is better than an extended warranty.
B. Is an agreement to cover repair during the implied warranty period.
C. Is included automatically with the purchase of a vehicle.
D. Usually does not cover the engine cooling system.
E. Covers the repair costs of a product.
Blooms: Understand
Difficulty: 3 Hard
58. The text identifies several phases in the buying process. The correct order of the phases
(p. 193) is
A. Evaluating alternatives, preshopping activities, selection and purchase, postpurchase

activities.
B. Preshopping activities, selection and purchase, evaluating alternatives, postpurchase

activities.
C. Preshopping activities, evaluating alternatives, selection and purchase, postpurchase

activities.
D. Postpurchase activities, evaluating alternatives, preshopping activities, selection and

purchase.
E. Evaluating alternatives, selection and purchase, preshopping activities, postpurchase

activities.
Blooms: Analyze
Difficulty: 1 Easy
59. Problem identification is part of the ____ phase of the decision-making process.
(p. 193)
Blooms: Remember
60. Information gathering is part of the ____ phase of the decision-making process.
(p. 193)
Blooms: Remember
61. Comparison of product features is part of the ____ phase of the decision-making process.
(p. 194)
Blooms: Remember
62. Price analysis is part of the ____ phase of the decision-making process.
(p. 194)
Blooms: Remember
63. Negotiation activities are part of the ____ phase of the decision-making process.
(p. 196)
Blooms: Remember
64. Choosing the payment method is part of the ____ phase of the decision-making process.
(p. 196)
Blooms: Remember
65. Properly maintaining and operating the product is part of the ____ phase of the decision-
(p. 199) making process.
Blooms: Remember
66. Resolving purchase concerns is part of the ____ phase of the decision-making process.
(p. 199)
Blooms: Remember
67. Which of the following is the best way to state a problem?
(p. 193)
A. I need to have a car.
B. I need transportation.
C. I need a motorcycle.
D. I need to have a minivan.
E. I need to have an SUV.
Blooms: Understand
Difficulty: 1 Easy
68. Which of the following sources would be the LEAST helpful when purchasing a vehicle?
(p. 194)
A. Personal contacts to learn about product performance.
B. Media information with purchasing advice.
C. Independent testing organizations like Consumers Union.
D. Online sources with product information.
E. Your cousin who has never purchased a car.
Blooms: Understand
Difficulty: 1 Easy
69. All of the following are appropriate questions you could ask before making a major
(p. 194) purchase except
A. Is it possible to delay the purchase or to do without the item?
B. Should I pay for the item with cash or buy it on credit?
C. Which brands should I consider?
D. How do the price, quality, and service compare at different stores?
E. All of these are questions that should be asked.
Blooms: Remember
70. Comparison shopping will be beneficial for buying all of the following except
(p. 196)
A. A hot dog at the baseball park.
B. Milk and bread that you buy weekly.
C. A pet dog.
D. Musical instrument accessories that you purchase online.
E. An expensive television.
Blooms: Analyze
Difficulty: 1 Easy
71. Comparison shopping will be beneficial for buying
(p. 196)
A. Inexpensive items.
B. One-time purchases of low-cost products.
C. Products whose prices are the same at all retailers.
D. Products whose quality is the same at all retailers.
E. Items that can be researched easily with advertisements.
Blooms: Understand
72. Buying a vehicle can be a challenging process. When researching a vehicle, a consumer
(p. 196) may want to consider all of the following except
A. Mechanical devices to improve performance.
B. Convenience options such as air conditioning.
C. Aesthetic features like metallic paint.
D. All of these may be considered.
E. None of the items listed are important when buying a vehicle.
Blooms: Remember
73. The average used car costs about _______ less than the average new car.
(p. 196)
A. $0
B. $1,000
C. $10,000
D. $25,000
E. $50,000
Blooms: Remember
Difficulty: 1 Easy
74. When purchasing a used vehicle, it is a good idea to

(p. 196)
A. Take out a loan for the entire cost.
B. Accept the dealer at his word about the condition of the vehicle.
C. Have a trained and trusted mechanic of your choice check out the vehicle.
D. All of these are correct.
Blooms: Understand
75. Which of the following is an advantage of a car lease?
(p. 196)
C. The capitalized cost is usually higher than the list price.
E. The total cost of a lease may be higher than a purchase.
Blooms: Remember
76. Which of the following is a disadvantage of a car lease?

(p. 196)
C. The capitalized cost is usually lower than the list price.
E. You can usually obtain a more expensive vehicle than with an outright purchase.
Blooms: Remember
77. The amount printed on a label with the suggested retail price that is posted on a vehicle is
(p. 198) called the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Remember
Difficulty: 1 Easy
78. The dealer's cost is also known as the

(p. 198)
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Remember
Difficulty: 1 Easy
79. A no-haggling dealer will use a(n)
(p. 198)
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Remember
80. The price of a leased vehicle is known as the

(p. 198)
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Remember
81. The expected value of a vehicle at the end of a lease is called the
(p. 198)
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Remember
82. Izzy is thinking about leasing a sports car. She will make monthly payments based on a
(p. 198) money factor and the
A. Invoice price.
B. Sticker price.
C. Set price.
E. Residual value.
Blooms: Understand
83. Helga plans to purchase a pickup truck. She should begin her price negotiation at the
(p. 198)
A. Invoice price.
B. Money factor.
C. Set price.
E. Residual value.
Blooms: Understand
84. A vehicle lease has several costs. Which of the following is the price of the vehicle?
(p. 197)
B. Money factor.
D. Residual value.
E. All of these.
Blooms: Remember
85. A vehicle lease has several costs. Which of the following is the interest rate used to
(p. 197) calculate the monthly cost?
B. Money factor.
D. Residual value.
E. All of these.
Blooms: Remember
86. A vehicle lease has several costs. Which of the following is the amount paid monthly?
(p. 197)
A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. Trade-in value
Blooms: Remember
87. A vehicle lease has several costs. Which of the following is the expected value at the end
(p. 197) of the lease?
A. Capitalized cost
B. Money factor
C. Payment amount
D. Residual value
E. Trade-in value
Blooms: Remember
88. Which of the following is a cost associated with a vehicle lease?

(p. 197)
B. Money factor.
C. Payment amount.
D. Residual value.
E. All of these.
Blooms: Remember
89. George has never bought a car before. Which of the following techniques should he use to
(p. 198) get the best deal?
A. Lowballing
B. Highballing
C. Leave a deposit to hold the vehicle
D. Research the actual dealer cost and begin negotiations from that point
E. Tell the dealer the highest monthly payment he can afford
Blooms: Understand
90. A potential problem with having a long car loan is

(p. 199)
A. Low monthly payments.
B. Low-interest loan.
C. Negative equity.
D. Loan preapproval.
E. All of these are potential problems.
Blooms: Understand
91. Which of the following is correct about the lemon law?
(p. 200)
A. It applies when a vehicle has been out of service for 60 days.
B. It was enacted in 45 of the 50 states.
C. It requires a refund for the vehicle after the owner has made repeated attempts to
obtain financing.
D. It applies to vehicles that have been serviced four times to correct the same problem in
the first 12,000 miles.
E. It applies to both new and used vehicle purchases.
Blooms: Remember
Difficulty: 3 Hard
92. A variable operating cost for a vehicle is

(p. 200)
A. Depreciation.
B. Insurance.
Blooms: Understand
Difficulty: 1 Easy
93. All of the following are fixed operating costs for a vehicle except
(p. 200)
A. Depreciation.
B. Insurance.
Blooms: Understand
94. A fixed operating cost for a vehicle is

(p. 200)
A. Depreciation.
D. Parking.
E. Tires.
Blooms: Understand
Difficulty: 1 Easy
95. All of the following are variable operating costs for a vehicle except
(p. 200)
A. Depreciation.
D. Parking.
E. Tires.
Blooms: Understand
96. The largest fixed expense associated with a new automobile is

(p. 200)
A. Depreciation.
B. Insurance.
Blooms: Remember
97. Which of the following costs will increase directly with the number of miles driven?
(p. 200)
A. Depreciation
B. Gasoline
C. Insurance
D. Interest on an auto loan
E. License and registration
Blooms: Understand
98. Craig wants to get his old car repaired, but he doesn't want to spend much money. He
(p. 201) probably will NOT want to go to a
A. Car dealer.
B. Independent auto repair shop.
C. Mass merchandise retailer.
D. Service station.
E. Specialty shop.
Blooms: Understand
99. Most customer complaints result from the all of the following except
(p. 201)
A. Deceptive pricing.
B. Defective products.
C. Long product lives.
D. Low-quality products.
E. Unexpected costs.
Blooms: Understand
100. Paul bought some bad gasoline that damaged the gas tank of his vehicle.
(p. 201)
A. He should sue the gas station where he bought his gas.
B. He never should have expected any problems with buying any product, especially gas
for his car.
C. He should provide the gas station with documentation of his purchase and all repair
costs.
D. He should assume that the gas station should be able to track his purchase based on
video cameras.
Blooms: Understand
101. Think about consumer complaints. Which of the following is correct?
(p. 201)
A. The first step is to contact the company headquarters.
B. If you don't get satisfaction from the local store, you should take legal action as the
next step.
C. An arbitrator will provide a nonbinding process to settle your differences.
D. If you don't get satisfaction from working with the company headquarters, you may get
assistance from a mediator in order to avoid legal action.
Blooms: Understand
102. A process used to settle grievances in a nonbinding process is called a(n)

(p. 203)
A. Arbitration.
B. County health department.
C. Lawsuit.
D. Mediation.
E. Two of these are correct.
Blooms: Remember
Difficulty: 1 Easy
103. Tamra went to a restaurant and had an unpleasant experience that sent her to the
(p. 302) hospital. The problems at the restaurant should be handled by
A. Arbitration.
B. The county health department.
C. A lawsuit.
D. Mediation.
E. The doctor who treated her.
Blooms: Understand
104. Which of the following is not a legal option for upper-income consumers?
(p. 206)
A. Class action lawsuits
B. A lawyer
D. Prepaid legal services
Blooms: Understand
Difficulty: 3 Hard
105. Sally has a major problem with a product and thinks that many others have had the same
(p. 205) problem. Which of the following is the best way to resolve the problem?
A. Class action lawsuit
B. A lawyer
D. Prepaid legal service
Blooms: Understand
Difficulty: 1 Easy
106. Steven needs to write a will. His best resource is (a)

(p. 206)
B. Lawyer.
D. Prepaid legal service.
Blooms: Understand
Difficulty: 1 Easy
107. Adolph has a low income and needs legal assistance. He should make use of (a)
(p. 206)
B. Lawyer.
Blooms: Understand
108. If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use
(p. 207) (a)
B. Lawyer.
Blooms: Remember
109. If you have a problem whose remedy will be $1,500-$3,000, the appropriate tool to use
(p. 205) would be (a)
A. Class-action lawsuit.
B. Lawyer.
Blooms: Remember
110. The unit price of a two-pound (32-ounce) box of brown sugar that costs $3.20 is
(p. 188)
A. $0.10 per ounce.
B. $0.10 per pound.
C. $1.60 per ounce.
D. $3.20 per pound.
E. $6.40 per pound.
Total cost/Number of ounces = Cost/Ounce = $3.20/(32) = $0.10.
Blooms: Apply
Difficulty: 1 Easy
111. The unit price of a 64-ounce carton of orange juice that costs $3.20 is
(p. 188)
A. $0.05 per ounce.
B. $0.10 per ounce.
C. $0.20 per ounce.
D. $1.00 per ounce.
E. $3.20 per ounce.
Total cost/Number of ounces = Cost/Ounce = $3.20/(64) = $0.05.
Blooms: Apply
Difficulty: 1 Easy
112. Using the following information, what is the cost to buy a car?
(p. 193)
A. $3,000.
B. $21,200.
C. $24,560.
D. $25,200.
E. $28,200.
Total vehicle cost = Down payment + Total monthly loan payment + Opportunity cost -
Estimated value at end of ownership = ($3,000) + ($350 × 6 years × 12 months) +
($3,000 × 6 years × 2%) - ($4,000) = $3,000 + $25,200 + $360 - $4,000 = $24,560.
Blooms: Apply
Difficulty: 3 Hard
113. Using the following information, what is the cost to lease a car?
(p. 193)
A. $18,000
B. $18,530
C. $18,560
D. $18,830
E. $19,030
Total lease cost = + Total monthly lease payment + Opportunity cost + end-of-lease
charges = ($300 × 5 years × 12 months) + ($300 × 5 years × 2%) + ($500) = $18,530.
Blooms: Apply
Difficulty: 3 Hard
Essay Questions
114. Define two of the following:
(p. 188)
a. Comparison shopping
b. Compulsive shopping
c. Impulse shopping
Two of the following should be included:
a. Comparison shopping—the process of considering alternative stores, brands, and

prices.
b. Compulsive shopping—a problem that can be revealed by analyzing these questions:
• Do you have an overwhelming desire to buy things?
• Do you buy to change your mood?
• Do your shopping habits hurt your relationships?
• Does over shopping damage your finances?
c. Impulse shopping—unplanned purchasing. This can result in financial problems.
Blooms: Remember
Difficulty: 1 Easy
115. What is the difference between an express warranty and an implied warranty?
(p. 188)
An express warranty, usually in written form, is created by the seller or manufacturer and
has two forms: the full warranty and the limited warranty. An implied warranty covers a
product's intended use or other basic understandings that are not in writing.
Blooms: Analyze
Difficulty: 1 Easy
116. Why are service contracts for vehicles not a good deal?
(p. 188)
Although service contracts, frequently called extended warranties, can cover repairs not
included in the manufacturer's warranty, they can cost from $400 to more than $1,000 and
do not always include everything that a shopper might expect.
Blooms: Analyze
117. What are three sources of information for buying decisions?
(p. 193)
Acceptable answers include these:
• Personal contacts.
• Business organizations.
• Media information.
• Independent testing organizations.
• Government agencies.
• Online sources.
Blooms: Remember
118. When choosing a vehicle, what are some categories and examples of optional equipment
(p. 193) that may be considered?
Optional equipment falls under three categories:
• Mechanical devices to improve performance (larger engine, transmission, power steering,

power brakes, cruise control).
• Convenience options (power seats, air conditioning, stereo systems, power locks, rear
window defogger, tinted glass).
• Aesthetic features that add to the vehicle's visual appeal (metallic paint, special trim or
upholstery).
Blooms: Remember
119. How is a lease different from a purchase?

(p. 193)
Although the cost of leasing may be lower, at the end of the lease period, a consumer has
no ownership of the item.
Blooms: Analyze
120. Why is it a bad idea to mention the trade-in vehicle early in the purchase process?
(p. 193)
It can confuse the process of determining the true price of the new car.
Blooms: Understand
121. What are three sales techniques that should be avoided when buying a car?
(p. 198)
The following are all acceptable:
• Lowballing.
• Highballing.
• Negotiating the monthly payments before determining the cost of the vehicle.
• Leaving a deposit to "hold" the vehicle.
• Unrealistic statements regarding cost and price.
• Signing agreements with preprinted amounts and numbers that are not appropriate for
the specific purchase.
Blooms: Remember
122. What are five factors that affect the operating costs of a vehicle?
(p. 200)
The following are all acceptable:
• Depreciation.
• Interest on an auto loan.
• Insurance.
• License, registration, taxes, and fees.
• Gasoline and oil.
• Tires.
• Maintenance and repairs.
• Parking and tolls.
Blooms: Remember
123. Assume that you are completely dissatisfied with a purchase. What are the four steps in
(p. 201) order that you should take to resolve your problem?
The four steps are
1. Return to the place of purchase and talk with a salesperson or store manager.
2. Contact company headquarters using a letter or e-mail.
3. Obtain consumer agency assistance.
4. Take legal action.
Blooms: Analyze
Difficulty: 1 Easy
124. What is the difference between mediation and arbitration?

(p. 203)
Mediation is the use of a third party to settle grievances. The mediator uses discussion
and negotiation in a nonbinding process.
Arbitration also is used to settle differences; however, the arbitrator's decisions are legally
binding.
Blooms: Analyze

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Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

True / False Questions

10. Service contracts on vehicles usually are wise financial decisions.

11. An example of a "preshopping activity" is negotiating the price of a product.

13. A clear statement of a problem is "I need to have a car."

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

30. The settlement of a difference by a mediator is legally binding.

31. The settlement of a difference by an arbitrator is legally binding.

Multiple Choice Questions

41. Which of the following is NOT a strategy for wise buying?

A. Buying winter clothes on sale in mid- or late winter

B. Researching the prices and choices for purchases

C. Buying items on impulse

D. Carefully considering buying alternatives

E. Using unit pricing to compare products

D. Private-label or store brands.

E. All of these are correct.

44. A standard measurement used to compare packages of different sizes is

45. This type of promotion provides an immediate savings for consumers.

47. Partial refunds of the price of a product are called

A. Coverage of basic parts against defects.

C. Extended coverage for air conditioning.

E. Power train coverage.

57. A service contract

A. Is better than an extended warranty.

B. Is an agreement to cover repair during the implied warranty period.

C. Is included automatically with the purchase of a vehicle.

D. Usually does not cover the engine cooling system.

E. Covers the repair costs of a product.

A. Evaluating alternatives, preshopping activities, selection and purchase, postpurchase

B. Preshopping activities, selection and purchase, evaluating alternatives, postpurchase

C. Preshopping activities, evaluating alternatives, selection and purchase, postpurchase

D. Postpurchase activities, evaluating alternatives, preshopping activities, selection and

E. Evaluating alternatives, selection and purchase, preshopping activities, postpurchase

D. selection and purchase

E. More than one of these is correct.

D. selection and purchase

D. selection and purchase

D. selection and purchase

D. selection and purchase

E. More than one of these is correct.

D. selection and purchase

E. More than one of these is correct.

D. selection and purchase

E. More than one of these is correct.

D. selection and purchase

A. I need to have a car.

D. I need to have a minivan.

E. I need to have an SUV.

A. Personal contacts to learn about product performance.

B. Media information with purchasing advice.

C. Independent testing organizations like Consumers Union.

D. Online sources with product information.

E. Your cousin who has never purchased a car.

A. Is it possible to delay the purchase or to do without the item?

B. Should I pay for the item with cash or buy it on credit?

C. Which brands should I consider?

D. How do the price, quality, and service compare at different stores?

E. All of these are questions that should be asked.

A. A hot dog at the baseball park.