17 Acquiring Property Flashcards
What is As is in the context of sales?
A category of sales that allows the seller to get around legal requirements for warranties; the buyer takes all risk of nonperformance or other problems despite any salesperson’s verbal assurances.
This term emphasizes the buyer’s responsibility for any issues after purchase.
What does the Cooling-off rule entail?
A Federal Trade Commission rule that gives consumers three days to cancel a contract of $25 or more if the contract was signed anywhere other than a seller’s normal place of business.
This rule is designed to protect consumers from high-pressure sales tactics.
Define an Extended warranty.
Agreement between the seller and buyer of a product to repair or replace covered product components for some specified time period; purchased separately from the product itself.
Extended warranties are often marketed as a way to provide peace of mind after the standard warranty expires.
What is Impulse buying?
Buying too quickly without fully considering priorities and alternatives.
This behavior can lead to buyer’s remorse and financial strain.
What does Lease refer to in sales?
Rental of a product while ownership title remains with the lease grantor.
Leasing is common for vehicles and equipment, allowing use without ownership.
What is Negotiating?
Process of discussing actual terms of agreement with a seller, usually on higher-priced items.
Effective negotiation can lead to better prices and terms.
What is Pre-shopping research?
Gathering information before actually beginning to interact with sellers.
This helps consumers make informed decisions and compare options.
What does Upside down mean in finance?
A situation where the owner of a financed asset owes more than it is worth, thus creating negative equity.
This often occurs with vehicles or property during market downturns.
Define Warranty.
Sellers’ assurances that goods are as promised and that certain steps will be taken to rectify problems if they arise.
Warranties provide consumer protection and can vary in length and coverage.
