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 ____