Business Study Guide

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, or shelf life, of a perishable product, such as milk or bread.

Class-Action Suit

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

Legal aid society

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

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 paid at the time of purchase.

Arbitration

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

Warranty

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

Suppose that you are considering buying a pair of in-line skates. What steps might you take before you shop and as you weigh your alternatives?

Before you shop, weighing alternatives, making the purchase, after the purchase

Two methods of consumer complaints

Deceptive pricing, and fraud

Fraud

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

What are three economic factors that influence what people buy?

Economic, social, and personal factors.

Buy an article of clothing

Prices, product quality, culture, interests, gender, and age.

What are the five methods of resolving consumer complaints?

Return to the place of purchase,contact company headquaters,consumer agency assistance, dispute resolution, small claims court.

Mediation

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

Unit Pricing

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

What are at least five strategies followed by smart shoppers.

Timing Purchases, Store selection, brand comparison, label information research, price comparison.

Impulse Buying

Which is puchasing items on the spur of the moment

Service Contract

Which is seperately purchased agreement by the manufacturer or distributor to cover the costs of repairing an item.