Chapter Review
Chapter 26:
Deceptive Sales Practices
Practice Test
1.
Lucas agreed to buy a set of books from a door-to-door salesperson. Four days after he signed the contract, he decided he wanted to cancel the sale. Lucas __________.
a.
can cancel the contract since it was during the federal cooling off period
b.
can cancel the contract since it was during the state cooling off period
c.
cannot cancel the contract because it is after the federal cooling off period
d.
cannot cancel the contract because it is a contract with a door-to-door salesperson
2.
Which of the following is NOT true about advertising?
a.
It is protected by the First Amendment right to free speech.
b.
It has become more persistent and intrusive.
c.
It cannot be regulated or prohibited at all.
d.
It may be resisted by people trying to avoid it.
3.
Tobacco advertising __________.
a.
is banned on radio and television
b.
is protected by free speech laws even if it is deceptive and misleading
c.
cannot be regulated by federal legislation
d.
cannot be regulated unless the industry agrees
4.
Corrective advertising requires advertisers to __________.
a.
accurately list the price of their product
b.
admit deception about past ads in their future ads for a certain period of time
c.
include warnings about their products
d.
waive their constitutional protections of free speech
5.
An advertisement by a company claiming to sell the "world's best hamburger" is __________.
a.
misleading advertising and thus illegal
b.
deceptive advertising and thus illegal
c.
permitted so long as it is the world's best hamburger
d.
permitted since it is an example of puffing
6.
A loss leader is __________.
a.
the same as bait and switch and is illegal
b.
legal even if the seller loses money on the sale
c.
legal even if the seller does not have an adequate supply of the item on hand to meet the expected demand
d.
legal even if the seller disparages the item in order to switch buyers onto a more expensive product
7.
What is NOT good advice to follow when buying products by mail?
a.
Make your purchases with cash.
b.
Read the product description carefully.
c.
Inspect the product when you receive it.
d.
Note the promised delivery time.
8.
If a seller sends an unsolicited "free" item in the mail, the consumer __________.
a.
must return the item within 30 days
b.
must pay for the item within 30 days
c.
has the choice of paying for the item or returning the item within 30 days
d.
may keep the item without paying for it
9.
What is NOT good advice for buying a product on an online auction?
a.
Keep your top bid flexible so that you can be sure to win the item.
b.
Research the product before bidding.
c.
Identify the seller and read any feedback from other consumers.
d.
Decide on the most secure form of available methods of payment.
10.
If a consumer refuses to pay for repairs after the repairs have been made, the repair shop may be able to __________.
a.
sell the item to pay the bill
b.
place a lien on the product until the consumer pays
c.
get an order from the court to garnish the consumer's wages
d.
charge the consumer double the costs for the repair
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