Personal Finance Chapter 4 Vocabulary

Question 1

Money that is due at the time of the purchase of an item.

Answer 1

Down Payment

Question 2

A method of indicating the freshness, or “shelf life” of a perishable product.

Answer 2

Open Dating

Question 3

A way of standardizing the price so that comparisons can be made between products of different sizes.

Answer 3

Unit Pricing

Question 4

A partial return of a portion of the purchase price for an item.

Answer 4

Rebate

Question 5

A dishonest business practice that is meant to deceive, trick, or gain an unfair advantage.

Answer 5

Fraud

Question 6

A legal process by which a neutral third party negotiates a solution to a conflict which is NOT legally binding.

Answer 6

Mediation

Question 7

A legal process by which a neutral third party negotiates a solution to a conflict which is legally binding.

Answer 7

Arbitration

Question 8

A legal process by which a large number of affected parties are represented in a single case.

Answer 8

Class-Action Lawsuit

Question 9

A written guarantee from a company that a product will continue to work for a period of time.

Answer 9

Warranty

Question 10

An unwritten guarantee that an item purchased will do what it’s supposed to do.

Answer 10

Implied Warranty