Buying and Selling Goods Flashcards
Deposit
A sum paid to hold an item fora specific time, ensuring it won’t be sold to anyone else during that period.
Return
A seller accepts a returned item from the buyer in exchange for the purchased price, other merchandise, or a credit voucher.
What are the 3 arrangements for returns
Refund of purchase price, exchange (choose another item in its place, will have to pay a difference if the new item costs more), store credit (credit voucher with which you can buy something else from the store).
Look for ____ in return policy
Signs explaining return policies, ask sales person about return policies, get all promises in writing.
Warranty
A promise made by a manufacturer or retailer that the goods being sold meet a certain standard.
Features of a warranty
Time limit, what is covered, what is not covered, conditions (what you do), conditions (what you don’t do), what will happen.
Express warranty
A written or verbal promise warranty
The guarantee may allow a consumer to…
Get the item repaired, get a refund, replace the item with another one, bring legal action against the manufacturer/retailer if that party fails to live up to its promise.
Implied warranty
A warranty created by law (Sales of Goods Act)
Sales of Good Act
Sellers has legal title to the goods and has right to them, the merchandise is of merchantable quality and is suitable for the required purpose, items are similar to any samples or descriptions provided.
Merchantable quality
Suitable for sale
Breach of contract
The failure to perform an obligation owed to another under a contract.
Credit
Money (or goods or services) advanced to another for repayment at a later date.
Credit rating
A personal financial profile detailing a person’s history of taking out and repaying loans.
Credit bureau
A business that provides lenders with info about the credit history of prospective borrowers.
Collateral
Assets or bonds used to secure a loan (house, car, insurance, stocks)
Cash reserves
Savings, money market funds, other investments that can be converted into cash.
Lenders
Asses your income, employment history, savings and monthly debts to ensure you can comfortably manage a mortgage.
(Capacity) Lenders evaluate income based on…
The source and type of income, how long you’ve been receiving the income and whether its been stable, how long that income is expected to continue into the future.
Default
Failure to carry out an obligation you’ve been contracted to do
Maturity
The date at which a total amount borrowed is due
Loan is not repaid at maturity…
Interest on payments or repayments that are not made when due, legal costs resulting from actions to collect payment or repayment in respect of the loan, reasonable costs, including legal fees, incurred by or on behalf of the company.
Consolidate
To combine or merge two or more things, such as debts, into one
Bankruptcy
A legal situation where a debtor hands over most assets to an official and is protected from further creditor actions to recover debts.
Advantages of credit
Borrowing money is convenient, useful in financial emergencies can force people into making regular payments on items of value instead of wasting money, makes it possible to buy large items, makes it possible to obtain items when u rlly need them and pay for them when ur better able to.
Disadvantages of credit
Borrowing money costs money, makes impulse buying easier, can make people feel richer than they are, can easily lead to heavy debt loans.
