Ch. 3 Review

The Consumer Bill of Rights was passed prior to World War II.

• True
• False

The Interstate Commerce Act was a result of the development of the railroad system in the U.S.

• True
• False

This light bulb will burn for 1000 hours. This is an example of an express warranty.

• True
• False

When a salesperson come to your home and you sign a contract, you are always obligated to fulfill the contract.

• True
• False

The first step of remediation when a product performs unsatisfactorily is to return the item to the store.

• True
• False

Fraudulent business practices include all of the following EXCEPT

• Home improvements that must be paid for in advance
• Emails asking you to send money to receive an inheritance
• Weight loss products that state "results may vary"
• Tooth whitening products that guarantee results

A loss leader item is

• an illegal business practice
• an item stores know they will lose money on
• a scam typically used by door to door salespeople
• none of the above

Which is NOT a type of redress?

• store credit
• repair an item
• replace an item
• refund your money

Functions performed by the Better Business Bureau included

• resolving disputes between businesses and consumers
• promoting ethical advertising and business practices
• providing consumer information
• all of these
• none of these

Advertising a non-existent item to get customers into your store is referred to as

• trading up
• bait and switch
• pyramid scheme
• none of these