Personal Finance – Chapter 8

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

Get instant access to
all materials

Become a Member