Chapter 12 & 14

1. Chapter 12 & 14 Review Game

2. Question 1 Examples of car dealer add-ons are ____. a. rust proofing b. paint sealers c. stain resistant upholstery fabric d. all of the above

3. Answer d. all of the above

4. Question 2 A timetable for checking systems and replacing parts on a new car is the ____. a. tire schedule b. fluid gauge c. maintenance schedule d. none of the above

5. Answer c. maintenance schedule

6. Question 3 The manufacturer's suggested retail price listed on a sticker in a new car's window is the ____. a. odometer b. option c. sticker price d. none of the above

7. Answer c. sticker price

8. Question 4 Used car parts that were repaired or restored to working order to be installed as replacements are ____. a. rebuilt parts b. features c. options d. none of the above

9. Answer a. rebuilt parts

10. Question 5 The amount the dealer paid to buy the car from the manufacturer is the ____. a. invoice price b. sticker price c. leasing price d. none of the above

11. Answer a. invoice price

12. Question 6 Franco has been leasing a car from a local dealership. At the end of his three-year lease agreement, he will pay a fee that will cover the cost of getting the car ready to sell or lease to someone else. This fee is known as ____. a. wear and tear fee b. residual fee c. disposition fee d. acquisition fee

13. Answer c. disposition fee

14. Question 7 Six months ago, Regina purchased a new vehicle from a local car dealership. After just two weeks, she had the car towed to the dealership because of electrical problems. In addition the cooling system malfunctioned; a major computer problem kept her car in the dealer's repair shop for 35 days. Because all of the problems occurred during the car's warranty period, Regina's car is defined as ____. a. a lemon b. rebuilt c. reconditioned d. none of the above

15. Answer a. a lemon

16. Question 8 If the invoice price of a vehicle is $22,500, approximately what would the sticker price of this same vehicle be? a. $22,500 b. $25,425 c. $23,100 d. $24,750

17. Answer d. $24,750

18. Question 9 At the end of the lease period on her car, DeShawn will take the vehicle to the dealership. Among other things, the dealer will check the number of miles she has driven. How will the dealership measure the miles she traveled while leasing the vehicle? a. mileage calculator b. odometer c. the tread on the car's tires d. all of the above

19. Answer b. odometer

20. Question 10 For an extra $1,000 Yoriko can purchase additional repair coverage on her new vehicle. This additional coverage is purchased from the dealer and is known as ____. a. basic warranty b. yearly inspection coverage c. extended warranty d. dealer warranty

21. Answer c. extended warranty

22. Question 11 When Britney was talking with a car salesperson regarding a lease agreement, she learned she would have to make an initial payment to cover the cost of setting up the lease. This fee also included a security deposit that is refundable at the end of the lease. This fee is known as a(n) ____. a. acquisition fee b. residual fee c. cost reduction fee d. capitalization fee

23. Answer a. acquisition fee

24. Question 12 Austin noticed that his used car's performance had declined slightly over the past week. It does not accelerate as quickly and a loud knocking noise occurs when he reaches 50 mph. He takes his car to a local repair shop and describes the symptoms to the mechanic. The mechanic asks Austin to leave his car so that it can be thoroughly checked. Later that same day the repair shop describes in writing the services it will perform and the price for the labor and parts to fix Austin's car. This document is known as a(n) ____. a. diagnostic b. estimate c. guarantee d. both B and C

25. Answer b. estimate

26. Question 13 Because he is in no hurry to buy her new car, in what two months will Wyn find car sales are typically slow at car dealerships, thereby allowing him to negotiate a better price? a. December and May b. August and January c. August and December d. none of the above

27. Answer c. August and December

28. Question 14 The amount an item is currently worth is its ____. a. market value b. quote c. insurance d. none of the above

29. Answer a. market value

30. Question 15 An insurance contract is a(n) ____. a. invoice b. policy c. condo d. none of the above

31. Answer b. policy

32. Question 16 A regular payment required to purchase insurance is a ____. a. bid b. premium c. bond d. none of the above

33. Answer b. premium

34. Question 17 An expert's determination of the value of a piece of property is known as a(n) ____. a. premium b. claim c. appraisal d. none of the above

35. Answer c. appraisal

36. Question 18 A special addition to an insurance policy that covers a specific loss not covered in the standard policy is a ____. a. point b. rider c. deductible d. none of the above

37. Answer b. rider

38. Question 19 Insurance that only pays for damage you caused to another vehicle is called ____. a. a deductible b. comprehensive coverage c. property damage liability insurance d. none of the above

39. Answer c. property damage liability insurance

40. Question 20 Insurance that pays for damage to your car caused by something other than a collision is called ____. a. collision insurance b. points c. comprehensive coverage d. none of the above

41. Answer c. comprehensive coverage

42. Question 21 The amount you pay for a loss before the insurance company pays anything is known as a ____. a. deductible b. risk c. coverage d. none of the above

43. Answer a. deductible

44. Question 22 The insurance that covers your own care when in an accident that was your fault is called ____. a. liability insurance b. collision insurance c. comprehensive insurance d. none of the above

45. Answer b. collision insurance

46. Question 23 Each time Guy gets a ticket or causes an accident, his state Bureau of Motor Vehicles is notified. This information becomes a part of Guy's driving record; his insurance company can then look at his driving record to determine whether to increase or decrease his premium. With each instance that is reported, what is added to his official record that could increase his car insurance premium? a. points b. risk factors c. rate d. none of the above

47. Answer a. points

48. Question 24 Three years ago, Herschell purchased leather furniture for his den at a cost of $4,000. An electrical fire in his den destroyed the furniture. In order to buy a sofa at today's prices similar to the furniture destroyed, what type of insurance coverage should Herschell have? a. market value b. liability value c. current value d. replacement value

49. Answer d. replacement value

50. Question 25 Valora purchased a new car rather than a used car so that if the car had mechanical problems, the cost of the repairs would be covered for three years or 36,000 miles. This repair coverage is known as the vehicle's ____________________.