Personal Finance chapter 4

Service Contract

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

Small claims court

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

Fraud

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

Class-action

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

Legal Aid

A network of community law offices that provide free or low-cost legal assistance.

Cooperative

A nonprofit organization owned and operated by it members for the purpose of saving money on the purchases of goods and services.

Down Payment

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

Down payment

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

FDA The Consumer Product Safety Commission BBB

Government agencies that can help protect consumers

1. Bank Issued 2. Store issued 3. Open-ended 4. Closed-ended

Types of credit accounts

Open dating

a labeling method that indicates the freshness, or shelf life, of a perishable product, such as milk or bread.

Rebate

a partial refund of the price of a product

Warranty

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

impulse buying

purchasing items on the spur of the moment.

Unit pricing

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

Go back to original place of purchase

Best way to resolve a dispute over goods and services

Return to place of purchase contact corporate headquarters consult consumer agency mediation or arbitration take legal action

Five methods to resolve consumer complaints

1. Before you shop 2. Weighing the alternatives 3. Making the purchase 4. After the purchase

Four phases of research based approach.

1. Parents 2. Friends 3. Banks 4. Credit Card Companies

Sources for loans

1. Timing purchase to take advantage of sales 2. Selecting the right type of store 3. Comparing brands 4. Comparing prices and unit pricing 5. Reading labels 6. Evaluating and comparing warranties and service contracts

Strategies smart shoppers use

Mediation

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

Arbitration

The process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding.

Economics, Social, Personal Factors

Three factors that affect your buying habits.

1. Identifying your needs 2. Gathering information 3. Becoming aware of the marketplace

Three steps to successful shopping