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
