Consumer Rights and Business Practices: A Comprehensive Overview, Quizzes of Production and Operations Management

Download Consumer Rights and Business Practices: A Comprehensive Overview and more Quizzes Production and Operations Management in PDF only on Docsity! TERM 1 3 roles of individual in society DEFINITION 1 1)citizen -> policies and laws 2) worker -> job, employment conditions & future growth 3) consumer -> spending, saving, investing & the rising cost of goods TERM 2 Consumer DEFINITION 2 -one who acquires goods and services for ultimate consumption or use by a person, family, or household. -must be involved in economic activities in order to accomplish their personal goals and achieve satisfaction. TERM 3 Earning DEFINITION 3 - the gain derived from the performance of service, labor, or work. - salary or wages of a person, the profits of a business enterprise, and returns from an investment TERM 4 Utilizing DEFINITION 4 - using for a certain purpose; there are always trade-offs for consumers -> if you want to eat out every day, you have to trade that for something else - effectively making use of one's economic and non-economic resources TERM 5 Borrowing DEFINITION 5 - obtaining or receiving something with the promise to return it or its equivalent - most consumers must borrow at one time or another (buying a home or car, credit cards, loan or lease) TERM 6 Saving DEFINITION 6 - the act of setting aside for future use (not spending) - savings rate is about 1% of annual income TERM 7 Investing DEFINITION 7 - is committing money or property to a productive use to be used in producing goods or services in order to profit in the form of interest, dividends, rent, capital gains, or other income. TERM 8 Taxpaying DEFINITION 8 - payment of taxes to any number of governments - approx 32% of a person's income goes towards taxes TERM 9 Consumer Choice DEFINITION 9 - consumer is presented with options of whether to buy or not to buy TERM 10 Consumer Sovereignty DEFINITION 10 - power to decide which products and services society will produce and consume - can have choice w/out sovereignty (renter's insurance or driver's license) TERM 21 Business Interest DEFINITION 21 price-quality model - sells goods and services at the highest possible price for the lowest possible quality because they want to make a profit TERM 22 Public Interest DEFINITION 22 Price-quality model - selling goods and services of fair quality at fair prices TERM 23 Equity DEFINITION 23 - what is right and what is wrong - about the ideals of justice, fair play, and impartiality - encourages access for all to acceptable goods and services for all consumers TERM 24 Choice DEFINITION 24 - Consumer Right by Roosevelt - consumers have the right to make an intelligent choice among products and services TERM 25 Information DEFINITION 25 - Consumer Right by Roosevelt - consumers have the right to accurate information on which to make a free choice, thus they are provided the facts with which to make informed choices while also being protected against fraudulent, deceptive, and misleading info, advertising, labeling, and related practices TERM 26 Safety DEFINITION 26 - Consumer right by Roosevelt - consumers have the right to expect products will not harm them; there should be no worry when they buy them TERM 27 Voice DEFINITION 27 Consumer Right by Roosevelt - The right to be heard; you have the right to say something - Interests of consumers will be given full and fair consideration in govt policy making situations. TERM 28 Redress DEFINITION 28 A Consumer's Right - the right to remedy problems that consumers have - consumers are provided with easily accessible, understandable and cost-efficient mechanisms through which grievances and dissatisfaction can be addressed. TERM 29 Environmental Health DEFINITION 29 A Consumer Right - consumers may consume in an environmentally sound manner and be protected from the ill effects of pollution TERM 30 Service DEFINITION 30 A Consumer Right - consumers may expect convenience ,courtesy, and responsiveness to consumer needs and problems and all the steps necessary to ensure that products and services meet the quality and performance levels claimed for them TERM 31 Consumer Education DEFINITION 31 A Consumer Right - consumers are provided the right to consumer education, without which consumers cannot gain the full benefit of the other 7 consumer rights TERM 32 Special Interest Group DEFINITION 32 - a group of persons who attempts to influence govt policy as it appeals for its particular concerns. TERM 33 Public Interest DEFINITION 33 - concerned with generally accepted, socially shared standards and practices pertaining to the welfare of all those in the community TERM 34 Caveat Emptor DEFINITION 34 "let the buyer beware" - motto for consumers pre-1890 because many goods didn't have brand names and there was little to be done to stop fraud and needless price raises TERM 35 1890s to 1920s DEFINITION 35 - early consumer movement took place - mass production brought more products and choices TERM 46 Moral Rights of Consumers DEFINITION 46 - Equitable treatment - Courteous treatment - Opportunity to compare - Standards of quality - Safe products - Honesty - Privacy TERM 47 Consumer Responsibilities DEFINITION 47 - assert consumer rights in marketplace transactions - know what questions to ask and when to ask them - complain when not satisfied TERM 48 Consumer Complaints DEFINITION 48 - Identity theft (21%) - Internet auctions (10%) - Third Party and Credit Debt Collection (9%) TERM 49 Sequential levels of Complaint DEFINITION 49 1) Local business 2) Manufacturer 3) Self-regulatory agency 4) Consumer action agency TERM 50 Better Business Bureau DEFINITION 50 - largest self-regulatory agency - sets standards - keeps records of complaints - may take action when a complaint is received - educates consumers and businesses TERM 51 Restitution DEFINITION 51 money paid to compensate a victim TERM 52 Compensatory damages DEFINITION 52 money paid to compensate a person for loss, injury or harm (lost wages, help with medical bills) TERM 53 Punitive damages DEFINITION 53 intended to punish the company TERM 54 Consumer Reports DEFINITION 54 - Published by Consumers Union which is a nonprofit, independent organization - their mission is to test products, inform the public, and protect consumers TERM 55 Identity Theft DEFINITION 55 - when a thief co-opts pieces of personal information and appropriates it without the persons knowledge to pretend to sellers that he or she is in fact that person TERM 56 Puffery DEFINITION 56 - legal - exaggerated statements by a seller about quality or value - not considered fraud since everyone knows sellers may exaggerate TERM 57 Bait and switch DEFINITION 57 - illegal - alluring but insincere offer - Low price is the bait to get the customer into the store where salesperson persuades customer to buy a similar but more expensive item TERM 58 Swindler DEFINITION 58 - an unscrupulous promoter who concocts an investment scheme that has zero possibility of making money for anyone other than the schemer