Street Law: A Course in Practical Law

Chapter 28: Cars and the Consumer

Student Self-Assessment Quizzes

The sticker price on a new car
A)is the price most people pay for a new car.
B)is generally discounted in part on the basis of the buyer's negotiating ability.
C)reflects any manufacturer's bonuses, rebates, or special sales.
D)is not affected by the time of year.
Considering safety features when buying a car is important because
A)while the likelihood of being in an accident is remote, people should be prepared.
B)in an average year, one out of every three motorists is involved in an accident.
C)a driver can never be too safe.
D)in an average year, one out of every ten motorists is involved in an accident.
Bumper-to-bumper warranties on new cars generally exclude
A)batteries and tires.
B)the engine.
C)the drive train.
If a used car has a sticker saying it is being sold "as is,"
A)there is no warranty.
B)the warranty is limited to 30 days.
C)the warranty only covers major mechanical parts.
D)the warranty only covers labor costs.
Financing a car with a longer repayment period means that the car will
A)be cheaper because the payments are lower.
B)cost more because there will be more paid in interest.
C)cost the same regardless of the length of payment.
D)cost less because the interest is lower.
The difference between leasing and buying a car is that
A)monthly payments are generally lower when purchasing than when leasing.
B)car insurance is not required when leasing a car.
C)at the end of the lease agreement, the lessee does not own the car.
D)gas is provided at no cost to individuals leasing cars.
The first thing to do when a person is involved in an auto accident is
A)call the police.
B)check for injuries.
C)look for witnesses.
D)exchange information with the other driver.
What information is not required when exchanging information with the other driver after an accident?
A)how much insurance each driver has
B)the driver's name, address, and phone number
C)the make, model, and year of the cars
D)name, address, and phone numbers of insurance agents
A person involved in an auto accident should
A)confess guilt.
B)indicate that his or her insurance will take care of everything.
C)sign a paper indicating he or she was not injured.
D)provide contact information for his or her insurance agent.
If you _____, you may make your car warranty ineffective.
A)fail to perform scheduled maintenance
B)miss a car payment
C)complain to the Better Business Bureau
D)fail to notify your car dealership with 48 hours of discovering a problem
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