Question 1

What percentage of people offered an extended warranty bought one?

Accepted Answer

65%

Answer

80%

Answer

30%

Answer

50%

Question 2

How long should a TV be reasonably expected to last according to the Australian Consumer Law?

Accepted Answer

Two years

Answer

Three years

Answer

Five years

Answer

One year

Question 3

What is the term used to describe the failure pattern of most consumer electronic goods?

Accepted Answer

Bathtub curve of failure

Answer

Persistent failure rate

Answer

Quick failure rate

Answer

Linear failure rate

Question 4

What is a good question to ask before purchasing an extended warranty?

Accepted Answer

What does this extended warranty give me that I don't already get for free under the Australian Consumer Law?

Answer

Does the warranty cover accidental damage?

Answer

How much does the warranty cost?

Answer

Is the warranty transferable?

Question 5

What should consumers ask themselves before buying an extended warranty?

Accepted Answer

What does this extended warranty give me that I don't already get for free under the Australian Consumer Law?

Answer

Do I really need the product?

Answer

How much does the warranty cost?

Answer

What color is the product?

Answer

Is the salesperson persuasive enough?

Question 6

What can happen when consumers try to use their extended warranties?

Accepted Answer

They are told about complex terms and conditions that prevent standard repairs.

Answer

They receive a full refund.

Answer

They get a free replacement product.

Answer

They get fast-tracked service.

Answer

They are offered an upgrade.

Question 7

What can be more expensive than the value of certain products?

Accepted Answer

Warranties.

Answer

Maintenance.

Answer

Transportation fees.

Answer

Insurance.

Answer

Labor costs.

Question 8

What company is mentioned as being terrible in handling warranties?

Accepted Answer

The National Warranty Company.

Answer

eBay.

Answer

Best Buy.

Answer

Target.

Answer

Amazon.

Question 9

Who is criticized for the handling of warranty claims in the text?

Accepted Answer

Harvey Norman.

Answer

Dell.

Answer

Apple.

Answer

Samsung.

Answer

Microsoft.

Question 10

Why is it important for consumers to be aware of their rights under the law?

Accepted Answer

To prevent being taken advantage of by warranty providers.

Answer

To ensure quick repair of faulty products.

Answer

To negotiate better prices for warranties.

Answer

To understand the terms of extended warranties.

Answer

To avoid purchasing unnecessary products.

Question 11

What percentage of consumers are aware of their rights under the Australian Consumer Law?

Accepted Answer

13%

Answer

75%

Answer

25%

Answer

50%

Answer

90%

Question 12

Why do retailers push for extended warranties on products?

Accepted Answer

To cover the period when products are least likely to fail.

Answer

To confuse consumers with complex terms.

Answer

To reduce the number of warranty claims.

Answer

To increase the overall cost of the product.

Answer

To provide additional benefits to customers.

Question 13

What protection do consumers already have for as long as the product can be reasonably expected to last?

Accepted Answer

Australian Consumer Law.

Answer

Consumer Goods Guarantee.

Answer

Retailer Liability Regulation.

Answer

Extended Warranty Amendment.

Answer

Product Warranty Act.

Question 14

How do retailers benefit from selling extended warranties for consumer electronics?

Accepted Answer

They cover the products during the period when failures are least likely to occur.

Answer

They offer discounts on future purchases.

Answer

They provide free repairs for accidental damages.

Answer

They lower the costs of product maintenance.

Answer

They increase the resale value of the products.

Question 15

What is a common reason why extended warranties may not be beneficial to consumers?

Accepted Answer

Complex terms and conditions that limit coverage.

Answer

High cost compared to product value.

Answer

Inability to transfer warranty to another person.

Answer

Short duration of coverage period.

Answer

Limited repair options in case of damage.

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