Personal Finance Chapter 13 Study Guide
Small claims court
A court that deals with disputes that involve amounts below a certain limit
Open dating
A labeling method that indicates the freshness, or shelf life, of a perishable product
Class-action Suit
A legal action on behalf of all the people who have suffered the same injustice
Down payment
A portion of the total cost of an item that must be paid at the time of purchase
Service contract
A separate agreement by the manufacturers to cover the cost of repairing a purchased item
Warranty
A written agreement from the manufacturer that states the conditions under which the product can be returned
Mediation
An attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation.
Fraud
Business practices that include deception trickery and an attempt to gain an unfair advantage
Social factors
If you buy an item because it is popular and all of your friends have it, you are using ______ to influence your buying decision
Appliances
Product labeling for ___ generally include operating costs which identify the most energy-efficient models
Impulse buying
Purchasing items on the spur of the moment
Identifying your needs
The first step in a good start to shopping
Implied warrenty
The guarantee that a product is fit to use for its intended purpose
Rebate
The partial refund of the purchasing price
Arbitration
The settlement by an impartial third party whose decision is legally binding
Unit pricing
The use of a standard unit of measurement to compare the price of packages that are different sizes
Small-claims court
There is no jury or lawyers and the judge's rule is final
Direct Selling
This includes mail order, online, and TV home shopping
Caveat emptor
This statement means "Let the buyer beware"
It is when you go to buy an advertised loss leader and the store tells you that the advertised item is not available and a better version is what you should buy. It is illegal.
What is "Bait and Switch"?
It's when a product is priced at a very low price and the store sells the item at that low price. Stores do this to try and get more people to come to their store and buy things
What is a loss leader and why do budinesses use them?
Comparison shopping
What is a waste of time when buying items such as salt?
The Big Mac Index is a method for evaluating the purchasing power of currencies around the world. It lists exchange rates and the value of the dollar and tells whether a country's currency is over or undervalued
What is the Big Mac Index and how does it work?
It's not legally binding
What is the problem of mediation?
Available for negotiation
When buying a car, the difference between the sticker price and the dealer price is the range ____