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What is the first thing you should do to try to solve a complaint with a product you have purchased?

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Read Chapters 1, 3 in the text,view the Power Points and the online resources in the content.

Define the following terms and give an example of each (2 pts. each for definition and 1 pt. each for example) 30 points

Opportunity Cost—

Command economy—

Profit—

Impulse purchase—

Puffery—

Deceptive advertising—

Persuasive advertising—

Comparative advertising—

Consumer—

Global warming—

II. Answer the following: (5 points each)

Why are brand products likely to be more expensive?

What is the difference between puffery and deceptive advertising?

What is the difference between your life span and your life cycle?

How is a market economy different from a command economy?

III. Using the information you have learned in this chapter answer the questions.

1. After seeing an advertisement offering to sell used cars at a very low interest rate, Ellen went to the local car dealership to purchase a used car. While looking at the used cars the salesperson continually promised her the advertised low interest rate. Ellen selected a car. As the forms for the sale were being prepared the salesperson informed her that the advertised low rate did NOT apply to the car she had chosen. (10 points)

a. Which deceptive and fraudulent practices were used on Ellen?

2. Also the CPSC has been active in dealing with toy safety. Find on that site the trend in toy recalls. What has been the trend from 2008 and 2014? What was the difference in number of recalls in 2014 compared to 2008? This under Safety Education. (20)

a. Trend—

b. Recalls in 2008

c. Recalls in 2014

c, Difference in number of recalls:

3. What sample letter can you get from the Consumer Action Handbook to help you with certain issues ? __________________

4, What are three steps the Federal Trade Commission gives to avoid hassles in online shopping? (15 points)

a.

b.

c.

5. What is the first thing you should do to try to solve a complaint with a product you have purchased? (5 points)

Be sure to answer all the questions associated with each question.

Submit your answers in the Assignment #1dropbox by the due date.

 

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