Personal Finance - Chapter 8

Capitalized cost

Price of the vehicle.

Mediation

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

Arbitration

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

Unit pricing

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

A(n) ________________ warranty covers most repairs of a product.

full

When leasing a motor vehicle, the capitalized cost refers to the

price of the vehicle.

Most consumer complaints are resolved with the use of a government agency. T/F

False

______________________ are publically supported community law offices that provide legal assistance to consumers who cannot afford their own attorney.

Legal aid societies

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.

Money factor

Interest rate being paid on the capital cost.

The highest prices for used cars are usually at a

new-car dealer.

Automobile leasing

A contractual agreement with monthly payments for the use of an automobile over a set time period, typically three, four, or five years.

Small claims court

A 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.

Class-action suit

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

Cooperative

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

Rebate

A partial refund of the price of a product.

An express warranty is usually in a written form. T/F

True

Consumer information from business organizations includes advertising, product labels, and packaging. T/F

True

National name brand products usually coast more than store brands or generics. T/F

True

The first element in a purchasing decision is gathering information. T/F

True

Impulse buying

Unplanned buying.

A legally binding decision by a third part is

arbitration.

Warranty

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

Service contract

An agreement between a business and a consumer to cover the repair costs of a product.

Residual value

Expected value of the vehicle at the end of the lease.

Open dating

Information about freshness or shelf life found on the package of a perishable product.