Personal Finance
Homework Assignment 4
FIN 202: Personal Finance
D. Barber
Professor Pogue
03/28/2013
Module 4 Homework
I would recommend to my friend Steven Franklin to get the car checked out by professional to get an estimate on repairs. He must first see if it was equipment failure or installment failure. If it is in fact a malfunction of the stereo then I would have him call the company’s main office where they make the stereo to get them to pay for damages to the vehicle. I don’t think the company that he bought the stereo from would be liable. I would have him write or email the company with the problem to see if can get resolved that way. If after a few attempts and no resolve then I would tell him to seek outside counseling. I would tell him to call the BBB or Chamber of Commerce and see what they recommend or maybe a mediator. If after all those suggestions and nothing, I would tell him to go to small claims court if the damages are within the states dollar amount for small claims court. He would have to call to find out. If he is not comfortable going to court by himself then he could call a lawyer. If he doesn’t have the funds he can call a lawyer for a free consultation or legal aid. He may just want to ask a few questions and not hire one. I would tell him to keep all records: conversations, dates, names, pictures, estimates, warranties, receipts, etc. If he has to go to court because the damages are over the limit for SCC then he may want to hire one or plead his case alone.
Describe four common consumer myths and explain the dangers of such erroneous beliefs. Why do you think they continue to be believed by many consumers?
• “I can return my car within three days of purchase.” The danger of the myth is that you’re stuck with something you really didn’t want and now you’re stuck with it. You may not be able to afford it and it gets reposed which
FIN 202: Personal Finance
D. Barber
Professor Pogue
03/28/2013
Module 4 Homework
I would recommend to my friend Steven Franklin to get the car checked out by professional to get an estimate on repairs. He must first see if it was equipment failure or installment failure. If it is in fact a malfunction of the stereo then I would have him call the company’s main office where they make the stereo to get them to pay for damages to the vehicle. I don’t think the company that he bought the stereo from would be liable. I would have him write or email the company with the problem to see if can get resolved that way. If after a few attempts and no resolve then I would tell him to seek outside counseling. I would tell him to call the BBB or Chamber of Commerce and see what they recommend or maybe a mediator. If after all those suggestions and nothing, I would tell him to go to small claims court if the damages are within the states dollar amount for small claims court. He would have to call to find out. If he is not comfortable going to court by himself then he could call a lawyer. If he doesn’t have the funds he can call a lawyer for a free consultation or legal aid. He may just want to ask a few questions and not hire one. I would tell him to keep all records: conversations, dates, names, pictures, estimates, warranties, receipts, etc. If he has to go to court because the damages are over the limit for SCC then he may want to hire one or plead his case alone.
Describe four common consumer myths and explain the dangers of such erroneous beliefs. Why do you think they continue to be believed by many consumers?
• “I can return my car within three days of purchase.” The danger of the myth is that you’re stuck with something you really didn’t want and now you’re stuck with it. You may not be able to afford it and it gets reposed which