Personal Finance – Chapter 8 – Flashcards
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The first element in a purchasing decision is gathering information. T/F
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True
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Consumer information from business organizations includes advertising, product labels, and packaging. T/F
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True
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National name brand products usually coast more than store brands or generics. T/F
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True
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An express warranty is usually in a written form. T/F
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True
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Most consumer complaints are resolved with the use of a government agency. T/F
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False
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A(n) ________________ warranty covers most repairs of a product.
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full
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The highest prices for used cars are usually at a
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new-car dealer.
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When leasing a motor vehicle, the capitalized cost refers to the
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price of the vehicle.
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A legally binding decision by a third part is
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arbitration.
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______________________ are publically supported community law offices that provide legal assistance to consumers who cannot afford their own attorney.
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Legal aid societies
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Impulse buying
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Unplanned buying.
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Cooperative
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A nonprofit organization whose member-owners may save money on certain products or services.
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Open dating
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Information about freshness or shelf life found on the package of a perishable product.
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Unit pricing
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The use of a standard unit of measurement to compare the prices of packages of different sizes.
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Rebate
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A partial refund of the price of a product.
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Warranty
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A written guarantee from the manufacturer or distributor of a product that specifies the conditions under which the product can be returned, replaced, or repaired.
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Service contract
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An agreement between a business and a consumer to cover the repair costs of a product.
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Automobile leasing
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A contractual agreement with monthly payments for the use of an automobile over a set time period, typically three, four, or five years.
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Capitalized cost
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Price of the vehicle.
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Money factor
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Interest rate being paid on the capital cost.
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Residual value
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Expected value of the vehicle at the end of the lease.
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Mediation
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The attempt by an impartial third party to resolve a difference between two parties through discussion and negotiation.
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Arbitration
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The settlement of a difference by a third party whose decision is legally binding.
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Small claims court
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A 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.
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Class-action suit
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A legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.
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Legal aid society
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One of a network of publicly supported community law offices that provide legal assistance to consumers who cannot afford their own attorney.
