Personal Finance Chapter 4

small claims court

a court that deals with legal disputes that involve amounts below a certain limit

class-action suit

a legal action on behalf of all the people who have suffered the injustice

legal aid society

a network of community law offices that provide fee or low-cost legal assistance

cooperative

a nonprofit organization owned and operated by its members for the purpose of saving money on the purchase of goods and services

rebate

a partial refund of the price of a product

down-payment

a portion of the total cost of an item that must be paid at the time of purchase

Arbitration

a process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding

service contract

a separately purchased agreement by the manufacturer or distributor to cover the costs of repairing the item.

warranty

a written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired

fraud

dishonest business practices that are meant deceive, trick, or gain an unfair advantage.

open dating

is a labeling method that indicates the freshness, or shelf life, of a perishable product, such as milk or bread

impulse buying

purchasing items on the spur of the moment

mediation

the attempt by a neutral third party to resolve a conflict between a customer and a business through discussion and negotiation.

unit pricing

the use of a standard unit of measurement to compare the prices of packages that are different sizes