Chapter 8

small claims court

court that settles legal differences involving amounts below a set limit and employs a process in which the litigants usually do not use a lawyer

implied warranty

covers a product's intended use or other basic understandings that are not in writing

limited warranty

covers only certain aspects of the product, such as parts, or requires buyer to incur part of the costs for shipping or repairs

open dating

information about freshness or shelf life found on package of a perishable product

money factor

interest rate being paid on capitalized cost

full warranty

defective product can be fixed or replaced during a reasonable amount of time

implied warranty of merchant-ability

guarantees that the product is fit for the ordinary uses for which it is intended

factors of negotiation

having all necessary information and dealing with correct authority

car buying services

help buyers obtain a specific vehicle at reasonable price. referred to auto broker

minimize consumer complaints

initiate communication, communicate with company, consumer agency assistance, legal action

class action suit

legal action take by a few individuals on behalf of all the people who have suffered the same alleged injustice

cooperative

nonprofit organization whose member owners may save money on certain products or services

legal aid society

one of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney

rebate

partial refund of price of a product

capitalized cost

price of the vehicle

national brand

products that are highly advertised and available in many stores

impulse buying

unplanned buying

unit pricing

use of a standard unit of measurement to compare the prices of packages of different sizes. price/number of units

buying motor vehicle

1. preshopping activites 2. evaluate alternatives 3. determining purchase price 4. postpurchase activities

invoice price

amount less than the sticker price; sometimes called dealer's cost

mediation

attempt by an impartial third party to resolve a difference between two parties through discussions and negotiation

residual value

expected value of the vehicle at the end of lease

depreciation

loss in vehicle's value due to time and use

selecting vehicle options

mechanical devices, convenience options, aesthetic features

set price dealers

no haggling car selling strategy. prices are presented to be accepted or rejected as stated

pre paid legal services

provide unlimited or reduced fee legal assistance for a set fee

lowballing

quoted a very low price that increases when add on costs are included at the last moment

lemon laws

require a refund for the vehicle after the owner has made repeated attempts to obtain servicing

warranty of title

seller has right to seel product

arbitration

settlement of a difference by a third party whose decision is legally binding

upside-downside or negative equity

after a period of paying for vehicle, the amount paid may be more than what the vehicle is worth

service contracts

agreement between a business and a consumer to cover the repair costs of a product. frequently called extended warranties

store brand/private label

sold by one chain of stores, lost cost alternatives to famouse name productsq

sticker price

suggested retail price

express warranty

usually in written form, is created by the seller or manufacturer and has two forms: full warranty and limited warrany

highballing

when offered a very high amount for a trade in vehicle with the extra amount made up by increasing the new car price

warranty

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