Ch. 4 Vocab

Service contract

A separately purchased agreement offered by the manufacturer or distributor to cover the costs of repairing an item.

Warranty

A written guarantee from the manufacturer or distributor that specifies the conditions under which a product can be returned, replaced, or repaired.

Contract

An agreement between two or more parties for the doing or not doing of something specified.

Consumer Product Safety Commission

An independent regulatory agency, created in 1972, that protects the public against risk of injury from consumer products. CPSC.

Impulse buying

The act of purchasing items on the spur of the moment.

Small claims court

A court that deals with legal disputes that involve amounts below a certain limit.

Class action suit

A legal action on behalf of all the people who have suffered the same injustice.

Open dating

A method of indicating the freshness or "shelf life" of a perishable product, such as milk or bread.

Cooperative

A nonprofit organization owned and operated by its members for the purpose of saving money on the purchase of certain goods and services.

Rebate

A partial refund of the price of a product.

Down payment

A portion of the total cost of an item that must be paid at the time of purchase.

Arbitration

A process in which a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding.

BBB

Better Business Bureau, a network of offices around the country sponsored by local business organizations.

Fraud

Dishonest business practices that are meant to deceive, trick, or gain an unfair advantage.

FDA

Food and Drug Administration, a division of the Department of Health and Human Services that protects the public against impure and unsafe foods, drugs, and cosmetics.

Legal Aid Society

One of a network of community law offices that provides free or low-cost legal assistance.

Mediation

The attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation.

Direct selling

The sale of a consumer product or service, person-to-person, away from a fixed retail location, marketed through independent sales representatives.

Unit pricing

The use of a standard unit of measurement to compare the prices of packages that are different sizes.

Comparison shopping

To compare prices and quality of competing merchandise.