QUIZLET: QUIZZES CHAPTER 8 FINANCE KAPOOR 14e

How are daily buying decisions related to overall financial planning?

As shown in Exhibit 8-1, a person's spending patterns can result in either financial difficulties or achievement of desired financial goals.

What factors commonly influence a person's daily buying choices?

Buying decisions are most influenced by economic factors (inflation, taxes, interest rates, government regulations), personal factors (age, sex, income, family situation), and social factors (lifestyle, interests, hobbies, advertising). Different individuals tend to overlook different factors. An increased awareness of these factors can assist in making wiser and more satisfying consumer choices.

In what situations can comparing prices help in purchasing decisions?

Comparing prices can be helpful when buying expensive or complex items, when competing brands are available, when different package sizes are available, and when product quality varies

What types of brands are commonly available to consumers?

Consumers have a choice of brand-name and various store-brand and private label products.

In what types of situations would small claims court and class action suits be helpful?

Small claims court is helpful for minor consumer problems that require legal action. Class action suits can provide legal assistance to a group with the same consumer complaint.

What are the major sources of consumer information?

The major sources of consumer information are personal contacts, business organizations, media information, independent testing organizations, online sources, and government agencies.

How does a service contract differ from a warranty? What rights do purchasers of products have even if no written warranty exists?

A service contract is a paid agreement for repairs. A warranty is a feature offered by a manufacturer or distributor Even if there is not a written warranty, certain implied warranties are present. For example, sale of an item implies that the store owns the product or an item must do what it is intended to do, at least for a while!

What maintenance activities could increase the life of your vehicle?

Frequent oil changes, regular tune-ups, and checking belts, hoses, and fluids regularly can minimize major repairs and maximize vehicle life.

What actions are appropriate when buying a used car?

Identify sources of used vehicles, research and compare prices, determine the condition of vehicle, and decide which options are desired.

Describe situations in which you might use the services of a lawyer.

If a consumer situation is complicated or involves a large sum of money, the use of a lawyer may be appropriate. Situations might include a product injury case, settling an estate, purchase of real estate, adoption of a child, or a divorce.

When might leasing a motor vehicle be appropriate?

Leasing may be appropriate for business use or when a new vehicle is desired every few years.

How does arbitration differ from mediation?

Mediation is the involvement of a third party to suggest solutions in a dispute; arbitration is a legally binding decision by a third party made once the two parties in dispute agree to the process.

How can most consumer complaints be resolved?

Most consumer complaints are solved by contacting the store or company office.

What are common causes of consumer problems and complaints?

Not being informed in advance of factors such as warranties, service availability, prices at various stores, or cost of installation can result in consumer complaints. Also, not asking questions and not obtaining details in writing are common causes of consumer problems.