Personal Finance Vocab #5

Small Claims Court

A court that deals with legal disputes that involve amounts below a certain limit. ($500 - $10,000 typically)

Open Dating

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

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.

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.

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.

Mediation

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

Unit Pricing

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

Legal Aid Society

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

Down Payment

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

Warranty

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