Personal Finance Chapter 4 Consumer Purchasing and Protection

Mediation

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

Legal Aid Society

a network of community law offices that provide free or low cost legal assistance

Small Claims Court

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

Open Dating

a labeling method that indicates the freshness of a perishable project

Class-Action Suit

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

Cooperative

a nonprofit organization owned and operated by its members for the purpose of saving money on the purchase of 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 whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding

Service Contract

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

Warranty

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

Fraud

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

Impulse Buying

purchasing items on the spur of the moment

Unit Pricing

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