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Chapter 6 Test Review

Terms in this set (60)

advantages to leasing
Small cash payments, monthly lease payments that are lower than monthly finance payments, potential to lease more expensive vehicle
after the purchase
fourth and final phase in research based approach, included proper operation and maintenance of the item, evaluating post purchase options and resolving all concerns
Approach
the method used make an informed decision
Arbitration is legally binding
The main difference between mediation and arbitration
arbitration
a process where by a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding
Arbitration
The settlement of a difference by a third party whose decision is legally binding
before you shop
first phase in research based approach, includes setting personal goals and gathering information on product/service
Better Business Bureau
The name of a common consumer agency that can be used for assistance with product/service issues?
class action suit
a legal action on behalf of all the people who have suffered the same injustice
Class-Action suit
method you can use to seek legal action to resolve your consumer complaint when many people are affected by the same issue
Comparison
Type of shopping seen as a waste of time when buying an item such as salt.
Consumer Agency Assistance, Mediation, Arbitration
Sources to seek assistance prior to seeking legal action
consumer information sources
People, Ads, Consumer Reports, Online review sources
Consumer Product Safety Commission and Food and Drug Administration
Government agencies that protect consumers from unsafe products/services
credit
arrangement to buy something now and pay for it later
Direct selling
Type of selling which includes all the following kinds of shopping: mail order, telephone sales an online shopping.
disadvantages to leasing
No ownership interest, necessity to meet requirements similar to qualify for credit, additional costs such as extra miles, costs for necessary repairs
document
when you record the process used to file a complaint
down payment
a portion of the total cost of an item that must be paid at the time of purchase
Economic, Social, Personal
Three factors that influence buying decisions
eligible
to be qualified.
examples of fraud
Telephone and mail scams that offer free prizes, travel packages, work at home schemes and investment opportunities
express warranties
written guarantees that clearly explain what is covered
Express Warranty
warranty that clearly explains what it covers
extended warranty
similar to a service contract
factors that create buyer dissatisfaction
Poor product quality, , Defective products that don't perform as advertised, Unexpected costs, Deceptive pricing, Unsatisfactory repair service
fraud
dishonest business practices that are meant to deceive, trick or gain an unfair advantage
Full warranty
warranty that states that a defective product will be fixed or replaced at no charge during a reasonable amount of time
identify your needs
Before you begin to shop, you should do "this"
implied warranty
unwritten guarantees that cover certain aspects of a product
Implied Warranty
warranty that is not stated, are unwritten, guarantee that a product is fit for its intended use
Implied
Type of warranty that guarantees that a product is fit for its intended use.
impulse buying
purchasing items on the spur of the moment, with little thought
last resort
When you are dissatisfied with a product and are seeking satisfaction, your ______should be taking legal action in small claims court.
leasing
a contractual agreement with monthly payments for the use of the automobile over a period of time
legal aid society
a network of community law offices that provide free or low-cost legal assistance
Legal Aid society
a network of community law offices that provide free or low-cost legal assistance
Legal Clinic
law offices that offer basic assistance with advice and filing paperwork, some private attorneys may offer services at a reduced rate
Limited warranty
warranty that covers only certain aspects of a product, such as its parts
making the purchase
third phase in research based approach, includes negotiating price, determining payment options and how item will be acquired
mediation
the attempt by a neutral third party to use discussion and negotiation to resolve a conflict between a customer and a business
negative equity
when the value of a car is less than the amount still owed
Negotiate
You would most likely ___ the price for a car.
open dating
labeling method that indicates freshness or the shelf life of perishable products
operating instructions
Product labels for appliances generally include __.
rebate
a partial refund of the price of a product
research based approach
methods used to make decisions about which products/services to buy
Return to the place of purchase
When dealing with a consumer issue, this is considered the easiest action and should be used first
service contract
a separately purchases agreement by the manufacturer or distributor to cover the costs of repairing the item
service contracts
considered not worth the costs for the extended coverage
Six smart buying strategies
Timing purchases, Store selection, Brand comparison, Label information research, Price comparison, Warranty evaluation
small claims court
a court that deals with legal disputes that involve amount below a certain limit. In the state of Connecticut, that limit is under $5,000
small claims court
A disagreement over an amount less than $5000 is generally handled by ___.
Social
factors obviously affected a consumer's choice of backpack if the pack is a popular style or made by a popular designer
sources for loans
Parents, bank, credit card company
transactions
monetary dealings with products/services
unit pricing
the use of a standard unit of measurement to compare the prices of packages that are different sizes
warranty
a written guarantee from the manufacturer or distributor that states the condition under which the product can be returned, replaced or repaired
weighing alternatives
second phase in research based approach, includes comparing features, analyzing prices and evaluating shopping locations
write a letter of complaint to a company
When you are unable to resolve an issue with a purchase by revisiting the store of purchase or by email if it was an online purchase you should ___
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