Definitions
What is legal tender?
Coins or notes in circulation, that must be accepted as payment for debts and financial obligations.
What is a need and a want?
Need is something essential for survival; a want is a desire
What does the ACCC stand for?
Australian Competition and Consumer Commission.
What is a Credit Card?
A card that provides instant loans on a short term basis. Interest is charged on the amount borrowed.
Define barter.
Swapping your goods and services with another person who has goods and services you want.
What is a contract?
A legally binding agreement or document.
What is comparison shopping?
Comparison shopping is when a consumer visits various retailers to obtain the best deal.
What does acceptable quality mean?
A product that is fit for purpose, acceptable in appearance and finish, free from defects, safe and durable.
Explain Lay-by.
Payment system whereby you can make an agreement with a store that you will pay a deposit to secure an item you wish to buy and the store will hold it for you. The item is then paid for in instalments.
What is the Latin term for 'buyer beware?'
Caveat emptor.
What is interest?
Interest is the money paid to a lending institution, and it is a percentage of the original amount borrowed.
What is the difference between goods and services?
Goods are the material items that the customers are ready to purchase for a price. Services are the amenities, benefits or facilities provided by the other persons.
What is Bait and Switch advertising?
Advertising of low-price products, but having no stock available; luring customer into the store to purchase a more expensive item.
What is a scam?
A dishonest or illegal business scheme.
Identify FIVE factors affecting your purchasing decisions?
Answers could include:
Age, Gender, Advertising and Marketing, Price, Convenience, Environmental Considerations, Culture, Customer Service, Disposable Income.
What are the three elements of a contract?
1. The offer
2. The acceptance
3. The consideration
What is a consumer?
Someone who purchases goods and services to satisfy needs or wants.
1. The manufacturer
2. The wholesaler
3. The retailer
What is consumer redress?
Redress is when consumers seek compensation or to rectify the problems that occur during e-commerce transactions.
Define superannuation.
A system where money is placed in a fund to provide for a person's retirement.