Consumer Bowl Study Answers

1. What does a credit bureau do?
   
   1. Approves applications for credit
   2. Informs applicants of the reasons for denial of credit
   3. Extends credit to qualified applicants.
   4. Provides creditors with reports of consumers' bill paying records.

2. When a check bounces, who, if anyone, is usually charged a fee?
   
   1. The person who writes the check.
   2. The person to whom the check is written.
   3. Neither the person who writes the check or the person to whom the check is written.
   4. Both the person who writes the check and the person to whom the check is written.

3. A person who reports to the issuer of a credit card that his/her credit card has been lost or stolen is responsible for:
   
   1. Any unauthorized charges.
   2. Any unauthorized charges until the loss or theft is reported.
   3. Only the first $50 of any unauthorized charges.
   4. No unauthorized charges.

4. What is unit pricing MOST useful for?
   
   1. Learning what the store owner paid for a food item.
   2. Showing what an item would cost if bought in large quantities.
   3. Comparing prices of different brands and sizes of the same food.
   4. Showing what an item would cost with a store coupon.

5. The Used Car Lemon Law requires used car dealers to provide customers with minimum warranties.  The length of the warranty is based on what?
   
   1. The mileage of the vehicle
   2. The model year of he vehicle
   3. The condition of the vehicle
   4. All of the above

6. You may incur significant penalties if you break a car lease.  Where is a detailed explaination of the termination fees required to be written?
   
   1. On the lease.
   2. On the purchase option.
   3. On the disclosure form.

7. An important item to look for when leasing a car is:
   
   1. Gap Insurance
   2. Excess Wear and Tear Policy
   3. Excess Mileage Policy
   4. All of the above.

8. What does Gap Insurance cover?
   
   1. The driver of another car who has an accident with you, but has no insurance.
   2. The difference between the replacement value of a leased car and what is still owed on it if your car is totaled or stolen.
   3. The difference between collision and bodily injury.

9. What is one of the responsibilities of the National Highway Traffic Safety Administration?
   
   • To investigate safety defects in motor vehicles.
     
   • To monitor gas prices.
   • To regulate traffic lights and signs.

10. What is a dumpster diver?
    
    • A person who steals receipts from transactions you have made with your credit or debit card from a trash container behind a business or at your home.

11. If you are a victim of identity theft, you should:
    
    1. Report the theft to the three major credit bureaus.
    2. Report the theft to the local police.
    3. Contact the Federal Trade Commission.
    4. All of the above.

12. You purchase merchandise through a catalogue.  The company does not have the item you ordered in stock.  Which of the following actions would comply with the Consumer Fraud Act?
    
    1. The company may send any substitute item it has in stock.
    2. The company may send the item ordered to the consumer when a new supply arrives.
    3. The company must send you a notice explaining the delay and offering to send you a full refund or the ability to purchase a substitute item that is of the same or better quality.

13. A pet dealer is required to label and identify each cage with what information?
    
    1. The sex and breed of the animal.
    2. The date and place of birth of the animal.
    3. The name and address of the attending licensed
    4. All of the above

14. In New Jersey, in addition to being certified by the State Board of Shorthand Reporting, what other attribute must a shorthand reporter have?
    
    In addition to being certified, the shorthand report must also be a notary so he/she can certify transcripts.  

15. Where can an athletic trainer work?
    
    An athletic trainer may work as an employee of a school, college, university or personal athletic team.

16. What New Jersey Division of Consumer Affairs agency issues registrations to enable the ordering, prescribing and/or dispensing of Controlled Dangerous Substances within our state?
    
    The Enforcement Bureau's Drug Control Unit, also known as the State Office of Drug Control.

     
    

17. In the State of New Jersey, while being supervised by a licensed dentist, which of the following functions may a registered dental assistant legally perform?
    
    1. Take impressions
    2. Insert temporary fillings
    3. Both A and B
    4. None of the above

18. What action transpires in most medical malpractice cases when they are brought to the attention of the Division of Consumer Affairs?
    
    1. Cases proceed to a jury trial where the jury decides the outcome.
    2. Cases are settled by insurance companies.
    3. Cases are dismissed by a judge.
    4. Plaintiffs withdraw the lawsuit action.

19. In the State of New Jersey, what agency is principally responsible for regulating the everyday activities of beauty salons, barber shops and manicuring salons?
    
    1. State Department of Health
    2. Local township authorities
    3. State Board of Cosmetology and Hairstyling
    4. Department of Community Affairs

20. A yearly rate of interest that includes fees and costs paid to acquire a loan is called what
    
    1. Cash advance fee
    2. Interest
    3. APR
    4. Late payment fee

21. A number, roughly between 300 and 850, that reflects your credit history on your credit report is called what?
    
    Your credit score.

22. What is the name of the Federal law which allows consumers to keep their phone number when switching wireless phone carriers.
    
    Number Portability law

23. There are many types of automobile insurance.  What does comprehensive insurance cover?
    
    Comprehensive insurance pays for damages to your car caused by theft, vandalism, fire or when an animal runs into your car.

24. Name three factors that influence your automobile insurance rates.
    
    • Your age
    • Your sex
    • Your driving record
    • The type of vehicle being insured
    • How much the vehicle is driven
    • Your marital status
    • Your grades in school
    • Your credit history
    • How sporty your vehicle is (the sportier it is the higher your rates)
    • If you have a number of driving tickets
    • If you have been in a variety of accidents

25. Who pays one of the highest automobile insurance rates?
    
    Teenage males

26. If you are in an automobile accident, what does liability insurance pay for?
    
    Liability insurance pays for the victims injuries, and property damage as well as your legal bills. Don't drive a car unless you have liability insurance.

27. What does automobile collision coverage cover?
    
    Collision coverage pays for damage to your car, even if the accident was your fault.

28. The FTC offers students tips for managing their credit.  Name THREE tips.
    
    • Shop around for the lowest interest rate
    • Stick to one major credit card
    • Plan and stick to a budget
    • Keep good records of spending
    • Use credit cards for necessities and real emergencies only
    • Pay off your balance in full each month
    • Avoid paying tuition with a credit card
    • Get your parents' advice on credit card use

29. Many credit card issuers charge an annual fee for giving you credit. Typically, what is the cost range for annual fees?
    
    Between $15 and $55.

30. As it applies to credit cards, what is the Agrace period?
    
    The time between the date of the credit card purchase and the date the company starts charging you interest.

31. The Electronic Funds Transfer Act does not fully protect debit card users from fraudulent charges unless the cardholder reports a lost or stolen card within how many days?
    
    Within two business days

32. Under the federal Fair Credit Billing Act, if you notice an error on a credit card bill how many days do you have, from the date of your credit card statement, to file a written dispute with the creditor?
    
    60 days

33. Graduating from high school is an exciting time, figuring out what your plans are, selecting a college, and applying for scholarships.  Unfortunately, according to the FTC  there are also many scholarship scams you need to watch out for.  Name ONE sign that an offer for a scholarship MAY NOT be legitimate.
    
    • The scholarship promises or guarantees free money
    • You are encouraged to act quickly before you lose out
    • They say money has been reserved for you
    • The offers states millions of dollars in scholarships go unused each year and they are waiting for you
    • The offer guarantees a scholarship or says you will get your money back
    • Boasts Awe do all the work and you will not find this offer anywhere else

34. If you receive a mailing promising you a free prize, or if you have been victimized in a free prize promotion through the mail, what agency should you contact?
    
    • Your local postmaster
    • Your nearest postal inspector