#1
Which of the following is a consumer right?
Right to fair treatment
ExplanationThe right to be treated fairly and honestly in the marketplace.
#2
What does a warranty typically cover?
Manufacturer's defects
ExplanationWarranties usually cover defects in materials or workmanship.
#3
Which organization in the USA is responsible for consumer protection?
Federal Trade Commission (FTC)
ExplanationThe FTC is the main federal agency that protects consumers in the USA.
#4
What is the purpose of the Magnuson-Moss Warranty Act?
To standardize product warranties
ExplanationThe Act sets minimum standards for written warranties and provides consumers with a way to enforce their warranty rights.
#5
What is the 'Cooling-Off Rule'?
A period during which a consumer can cancel certain sales contracts
ExplanationThe rule allows consumers to cancel certain sales contracts within a specified period.
#6
What is the purpose of the Consumer Product Safety Commission (CPSC) in the USA?
To ensure the safety of consumer products
ExplanationThe CPSC is responsible for protecting the public from unreasonable risks of injury or death from consumer products.
#7
Which type of warranty is generally offered with used products?
Limited warranty
ExplanationLimited warranties typically cover specific defects for a limited period of time.
#8
What is the purpose of the Better Business Bureau (BBB)?
To resolve disputes between businesses and consumers
ExplanationThe BBB helps consumers and businesses resolve disputes in a fair and timely manner.
#9
Which of the following is an example of an implied warranty?
An unwritten promise that a product will work as intended
ExplanationImplied warranties are not written down but are assumed by law.
#10
Which of the following statements is true about a manufacturer's warranty?
It may require the consumer to register the product
ExplanationSome warranties require the consumer to register the product to be eligible for warranty service.
#11
What is the purpose of the Consumer Rights Directive in the European Union?
To harmonize consumer protection laws across EU member states
ExplanationThe Directive aims to ensure a high level of consumer protection across the EU.
#12
Which of the following is an example of a statutory warranty?
A warranty mandated by law
ExplanationStatutory warranties are imposed by law and do not require agreement by the parties.
#13
What is the significance of the 'Implied Warranty of Merchantability'?
It guarantees that a product will be fit for ordinary purposes
ExplanationThis warranty ensures that a product is suitable for its intended use.
#14
What does the term 'express warranty' refer to?
A warranty that is explicitly stated by the seller or manufacturer
ExplanationExpress warranties are explicitly offered and can be written or verbal.