Chapter 4 ehlers test

What is the maximum amount of damages sought in small claims court in Missouri (use the internet!)

$5,000 or less.

In what order should you pursue the following courses of action when you are dissatisfied with a purchase and suspect fraud?

(a) resort to dispute resolution (b) take legal action © return to the place of purchase (d) get help from a consumer agency (e) contact company headquarters? C, E, D, B, A

What are the four phases to research-based approach when making large consumer purchases?

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

When should you comparison shop (provide 1)?

1. Buying complex or expensive items

What do you need to consider to help get the most for your money (three things!)

1. Economic factors, 2. Social factors, 3. Personal factors

How do you find a lawyer?

1. Getting referral from someone you know 2. Checking newspapers and yellow pages of phone book 3. Calling local branch of American Bar Association (ABA)

How can being aware of the marketplace help you?

1. It is where you can gain reliable information about the product that you are purchasing 2. Saves money when you determine the different prices for the product.

What are the two major reasons customers are dissatisfied with their purchase?

1. Poor Quality 2. Unexpected costs

Identify two factors that might affect your purchase of a pair of running shoes.

1. Price 2. Quantity

What are four ways you are influenced to shop at a certain store or business?

1. Quality and Variety of Goods 2. Price 3. Hours 4. Location

If you have dissatisfaction with a project or service, what items do you need to track and Document?

1. Receipts Names of people you talk to 2. Dates of attempted repairs Copies of letters you write 3. Any fees that you have had to pay

How do you gather information about buying a particular item (information sources)- Provide 2!

1. Recommendations by people you know 2. Product advertising and labeling

Name five sources of product information that you might consult before making an expensive purchase. (This can come from anything previously discussed in Chapter 4 Section 1!)

1. Recommendations by people you know 2. Product advertising and labeling 3. Media sources 4. Consumer publications 5. Government agencies

What are four ways to get the most value for your dollar?

1. The timing of your purchase 2. Store selection 3. Brand Comparison 4. Label information research

What is small claims court?

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

What is a class action lawsuit?

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

What is the legal aid society?

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

What is a cooperative?

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

What is a rebate?

A partial refund of the price of a product

What is arbitration?

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

What is a service contract?

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

What is one advantage and disadvantage of direct selling?

Advantage: Convenience of not having to leave home. Disadvantage: paying for shipping and handling and difficulty in returning purchases

Compare the advantages and disadvantages of using cash instead of credit to purchase an expensive item.

Advantages: -No Debt No additional fees Disadvantages: -No interest -You don't have that cash available later

What is a down payment?

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

Which is legally binding, meditation or arbitration?

Arbitration

What is fraud?

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

What federal agency is responsible for requiring labels to show factual food information?

FTC

What is open dating?

Helps consumers determine the freshness of some foods, manufacturers print dates on the labels

Differentiate between an implied warranty and an expressed warranty

Implied: unwritten guarantees that cover certain aspects of a product or its use Expressed: full or limited written warranties

What does convenience do to the cost of your good or service?

More convenience usually means higher prices.

What is impulse buying?

Purchasing items on the spur of the moment.

Where do you go FIRST to resolve a complaint with product or service?

Resolve most complaints first at original place of purchase.

What is the BBB?

The "Better Business Bureau"

What is mediation?

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

What is unit pricing?

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

Why might buying an item now on credit cost you tremendously down the road?

When the interest rates compile money onto the amount originally due.

How do you qualify for the L.A.S?

Your income must fall below certain amount to qualify for help from legal aid society.

Complete the sentence: Price does not

always equal equidity

Why would you go through mediation/arbitration instead of taking someone to court?

to prevent a lawsuit against an organization that would waste valuable time and money resources of both parties.