WEEK SEVEN ECONOMICS AND PERSONAL FINANCE (CONSUMER PURCHASING AND PROTECTION)
step by step process of making a large purchase
1) Investigate 2) Evaluate 3) Negotiate 4) After the purchase
small claims court
a court that deals with legal disputes that involve amounts below a certain limit
open dating
a labeling method that indicates the freshness, or shelf life, of a perishable product, such as milk or bread.un
class action suit
a legal action on behalf of all the people who have suffered the same injustice
legal aid society
a network of community law offices that provide free or low-cost legal assistance
rebate
a partial refund of the original price of the product
down payment
a portion of the total cost of an item that must be paid at the time of purchase
arbitration
a process where 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
examples of extended warranties
cars, homes, and appliances
limited warranty
covers only certain aspects of the product, such as parts
transactions
dealings of any kind involving money
fraud
dishonest business practices that are meant to deceive, trick, or gain an unfair advantage
what are the pros of credit?
has interest fees after purchase
approach means...
method
what are the cons of cash?
might need to wait for the money
what are the pros of credit?
more convenient; shop now and pay later
what are the pros of cash?
no interest fees after purchase
pros of direct selling
not having to leave home
cons of direct sellings
online, mail order, and tv
examples of direct selling
online, mail order, and tv
when comparing brands, remember to compare
price and quality
impulse buying
purchasing items on the spur of the moment
eligible means...
qualified to be chosen
how can someone avoid fraud?
recognizing and reporting it
documents are used to...
record in detail
extended warranties
service contracts are not really warranties, they are separately purchases agreement that covers the cost of repairing the item
full warranty
states that a defective product can be fixed or replaced during a reasonable amount of time
how do you receive a rebate?
take the information from the product and mail it
who decides the outcome in a small claims court?
the judge
mediation
the tempt by a neutral third party to resolve a conflict between a customer and a business through discussion
unit pricing
the use of a standard unit of measurement to compare the prices of packages that are different sizes
examples of an implied warranty
toasters will toastl
formula for unit price
total price/unit of measurement = unit price
implied warranties
unwritten guarantees that cover certain aspects of a product or its use/guarantees that a product is fit for its intended use
documents are...
writing that provides information
cons of impulse buying
you might buy products you don't need and end up using more money than planned
