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Personal Finance
Chapter 15
15-1 Key Terms:
Unit price –
Brand –
Impulse buying –
15-1 Checkpoints:
What are the main sources of consumer information?
What decision-making steps should be taken when making a purchase?
What are the main categories of shopping locations?
15-1 Assessment:
1. The most reliable consumer information source will usually be
a. advertising
b. comments from salespeople
c. comments from other consumers
d. reports from consumer testing organizations
2. The first step in the buying decision-making process is to
a. identify product alternatives
b. evaluate the services at different stores
c. decide whether to use cash or credit
d. identify your needs
3. Which of the following is an example of a non-store shopping location?
a. club warehouse
b. vending machine
c. factory outlet
d. hypermarket
15-2 Key Terms:
Consumer movement –
Fraud –
Guarantee –
Express warranty –
Implied warranty -
15-2 Checkpoints:
What are the seven rights of consumers?
How does an express warranty differ from an implied warranty?
What actions can be taken to be an involved consumer?
15-2 Assessment:
1. True or False… The U.S. Consumer Product Safety Commission is responsible for regulating
the safety of food.
2. True or False… What implied warranty is usually printed in the owner’s manual of a
product..
3. A person who compares product information on labels is using the consumer right to
a. service
b. be informed
c. be heard
d. a remedy
4. If a person returns an item as new for a refund after using it, this violates the consumer
responsibility
a. honest
b. involved
c. informed
d. active
15-3 Key Terms:
Mediation –
Arbitration –
Class action suit –
Small claims court -
15-3 Checkpoints:
What are sources of common consumer complaints?
List the steps of the consumer complaint process..
How does mediation differ from arbitration?
15-3 Assessment:
1. Most consumer complaints are resolved by
a. taking legal action
b. using arbitration
c. hiring a lawyer with consumer protection experience
d. returning to the place of purchase
2. A company refused to refund $10 to over 4,000 customers. This situation might result in
the use of
a. mediation
b. arbitration
c. a class action suit
d. small claims court