acquiring a vehicle section 16.1. understanding business and personal law acquiring a vehicle...
TRANSCRIPT
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Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1Section 16.1Acquiring a Vehicle Acquiring a Vehicle
Section 16.2Section 16.2Motor Vehicle Insurance Motor Vehicle Insurance
1616ChapterChapter Owning a VehicleOwning a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
What You’ll Learn
How to identify important parts of a loan How to identify important parts of a loan agreement (p. 338)agreement (p. 338)
How to trade in a vehicle (p. 341)How to trade in a vehicle (p. 341)
How to identify the pros and cons of How to identify the pros and cons of leasing a vehicle (p. 342)leasing a vehicle (p. 342)
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
What You’ll Learn
How to compare options for buying a pre-How to compare options for buying a pre-owned vehicle (p. 342)owned vehicle (p. 342)
How to pursue legal remedies if you buy How to pursue legal remedies if you buy a defective vehicle (p. 347)a defective vehicle (p. 347)
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
What You’ll Learn
How to recognize some federal laws How to recognize some federal laws designed to protect you when you buy a designed to protect you when you buy a vehicle (p. 348)vehicle (p. 348)
How to summarize the legal aspects of How to summarize the legal aspects of repairing your vehicle (p. 350)repairing your vehicle (p. 350)
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Why It’s Important
Knowing about financing, buying, and Knowing about financing, buying, and leasing a vehicle will enable you to make leasing a vehicle will enable you to make better purchase decisions.better purchase decisions.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Legal Terms
finance charge (p. 338)finance charge (p. 338)annual percentage rate (APR) (p. 338)annual percentage rate (APR) (p. 338)Used Car Rule (p. 344)Used Car Rule (p. 344)Buyer’s Guide (p. 344)Buyer’s Guide (p. 344)repossess (p. 346)repossess (p. 346)adhesion contract (p. 347)adhesion contract (p. 347)
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Laws of Ownership
Financing a Vehicle
Buying a New Vehicle Trade-In
Section OutlineSection Outline
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Leasing a New VehicleSection OutlineSection Outline
Consumer Leasing Act
Buying a Pre-Owned VehicleBuying from a DealerBuying from a Private PartyBuying from Rental Companies
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The Contract to Buy a Vehicle Section OutlineSection Outline
What to Do if You Buy a Defective Car
Federal Consumer Protection Odometer Protection
Repairing a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What laws do you think apply to buying a vehicle?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
16.116.1
Laws of Ownership Laws of Ownership
The Uniform The Uniform Commercial Commercial CodeCode
Consumer Consumer protection protection laws laws
Laws Laws regulating regulating creditcredit
The law that applies to the purchase of a The law that applies to the purchase of a vehicle comes from several sources. vehicle comes from several sources.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What information should you have before you buy a vehicle using credit?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
One of the first steps in buying a car is One of the first steps in buying a car is to decide how much you can afford to to decide how much you can afford to pay. pay.
You can buy a carYou can buy a car
Financing a VehicleFinancing a Vehicle
with cashwith cashwith credit with credit
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Federal law requires lenders to Federal law requires lenders to disclose the finance charge and disclose the finance charge and annual percentage rate (APR) to annual percentage rate (APR) to borrowers.borrowers.
Financing a Vehicle Financing a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The The finance chargefinance charge is the cost of is the cost of the loan in dollars and cents.the loan in dollars and cents.The The annual percentage rate (APR)annual percentage rate (APR) is the true interest rate of the loan.is the true interest rate of the loan.
Financing a Vehicle Financing a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
1.1. The exact price you’re paying for The exact price you’re paying for the vehiclethe vehicle
2.2. The amount you’re financingThe amount you’re financing3.3. The finance chargeThe finance charge
What You Should Know What You Should Know Before You Buy Before You Buy
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
4.4. The APRThe APR5.5. The number and amount of The number and amount of
paymentspayments6.6. The total sales price (the sum of the The total sales price (the sum of the
monthly payments plus the down monthly payments plus the down payment)payment)
What You Should Know What You Should Know Before You Buy Before You Buy
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
What is the difference between the finance charge and annual percentage rate?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
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ANSWERANSWER
The finance charge is the dollar amount of the interest, and the APR is an interest rate.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What steps should you take before buying a new vehicle?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
After deciding how much you can After deciding how much you can afford to pay for a car, when buying a afford to pay for a car, when buying a new car you should new car you should
Buying a New Vehicle Buying a New Vehicle
learn about the cars you may be learn about the cars you may be interested ininterested inresearch pricingresearch pricing
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
When buying a new car, do not When buying a new car, do not discuss a trade-in with the dealer until discuss a trade-in with the dealer until you have negotiated the best price for you have negotiated the best price for your new car. your new car.
Trade-In Trade-In
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
You should also know the value of You should also know the value of your trade-in, which can be found on your trade-in, which can be found on the Internet or in the library.the Internet or in the library.
Trade-In Trade-In
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
How is leasing a vehicle different from buying one?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The advantages to leasing a new The advantages to leasing a new vehicle are:vehicle are:
Leasing a New Vehicle Leasing a New Vehicle
low down paymentlow down paymentsmaller monthly payments smaller monthly payments
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The disadvantages to leasing a new The disadvantages to leasing a new vehicle are:vehicle are:
Leasing a New Vehicle Leasing a New Vehicle
most expensive way to acquire a most expensive way to acquire a carcarafter making a lot of payments, you after making a lot of payments, you end up with nothing to trade in end up with nothing to trade in toward your next vehicle toward your next vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The Consumer Leasing Act is a The Consumer Leasing Act is a federal law requiring businesses to tell federal law requiring businesses to tell you about all of the terms of a lease of you about all of the terms of a lease of personal property. personal property.
Consumer Leasing Act Consumer Leasing Act
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Understanding Business and Personal Law
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This information can be used to This information can be used to compare different leases or to compare different leases or to compare the cost of leasing with the compare the cost of leasing with the cost of buying.cost of buying.
Consumer Leasing Act Consumer Leasing Act
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
Where can you buy a pre-owned car?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
A pre-owned vehicle may be A pre-owned vehicle may be purchased from purchased from
Leasing a New Vehicle Leasing a New Vehicle
a new car dealera new car dealera used car dealera used car dealera car rental companya car rental companya private partya private party
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Sometimes banks and loan Sometimes banks and loan companiescompanies
Leasing a New Vehicle Leasing a New Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
A used car dealer may have a large A used car dealer may have a large selection of cars, but often does not selection of cars, but often does not maintain facilities to service the car maintain facilities to service the car after you buy it.after you buy it.
Buying from a Dealer Buying from a Dealer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
New car dealers often sell used cars New car dealers often sell used cars that they have taken in for trade and that they have taken in for trade and have service facilities. have service facilities.
Buying from a Dealer Buying from a Dealer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
When selling a vehicle, a dealer When selling a vehicle, a dealer
Warranties Warranties
gives an implied warranty that the gives an implied warranty that the vehicle is merchantable, unless this vehicle is merchantable, unless this warranty is excluded.warranty is excluded.often gives a 30-, 60-, or 90-day often gives a 30-, 60-, or 90-day guarantee.guarantee.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The FTC’s The FTC’s Used Car RuleUsed Car Rule requires all requires all used car dealers to place a large used car dealers to place a large sticker, called a sticker, called a Buyer’s GuideBuyer’s Guide, in the , in the window of each used vehicle they window of each used vehicle they offer for sale. offer for sale.
The Used Car Rule The Used Car Rule
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The guide explains any specific The guide explains any specific warranty protection that is provided warranty protection that is provided and also states whether there is and also states whether there is
The Used Car Rule The Used Car Rule
no warranty,no warranty,an “as is” warranty, oran “as is” warranty, oran implied warranty. an implied warranty.
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Owning a Vehicle
The advantage to buying from a The advantage to buying from a private party is that the prices are private party is that the prices are lower, but there are disadvantages, as lower, but there are disadvantages, as well.well.
Buying from a Private Party Buying from a Private Party
no implied warranty of no implied warranty of merchantabilitymerchantabilityno recourse if something goes wrong no recourse if something goes wrong
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Understanding Business and Personal Law
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Another disadvantage is that the car Another disadvantage is that the car might be stolen. might be stolen.
In this case, a bank or loan company In this case, a bank or loan company may have the right to may have the right to repossessrepossess, or , or take back, the car, regardless of who take back, the car, regardless of who presently owns it.presently owns it.
Buying from a Private Party Buying from a Private Party
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Before you buy from a private party, Before you buy from a private party, be sure to:be sure to:
Buying from a Private Party Buying from a Private Party
test-drive the vehicletest-drive the vehicleask for the vehicle’s maintenance ask for the vehicle’s maintenance recordrecordtalk to previous ownerstalk to previous ownersask to see the certificate of titleask to see the certificate of title
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Understanding Business and Personal Law
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Advantages:Advantages:
Buying from Rental Companies Buying from Rental Companies
are usually only a year or two oldare usually only a year or two oldcan be good buyscan be good buysusually have had regular usually have had regular maintenancemaintenancecome with warranties come with warranties
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Understanding Business and Personal Law
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Disadvantages:Disadvantages:
Buying from Rental Companies Buying from Rental Companies
have probably had heavy usehave probably had heavy usehave high mileage have high mileage
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What form should a contract to buy a vehicle take?
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Understanding Business and Personal Law
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Under the UCC, a contract for the sale Under the UCC, a contract for the sale of goods valued at $500 or more must of goods valued at $500 or more must be in writing to be enforceable. be in writing to be enforceable.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
When private parties enter into a When private parties enter into a contract, they can simply write on a contract, they can simply write on a piece of paper that one party agrees piece of paper that one party agrees to sell and the other party agrees to to sell and the other party agrees to buy the vehicle. buy the vehicle.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The contract between private parties The contract between private parties must also identify the vehicle and be must also identify the vehicle and be signed by the seller.signed by the seller.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
When a contract is entered into When a contract is entered into between a private party and a dealer, between a private party and a dealer, the private party is usually at a the private party is usually at a disadvantage. disadvantage.
The dealer asks the buyer to sign a The dealer asks the buyer to sign a printed form.printed form.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
A sentence on the front of the form A sentence on the front of the form says that the buyer agrees to the says that the buyer agrees to the terms on the reverse side. terms on the reverse side.
The back of the form contains a full The back of the form contains a full page of small-print terms that favor page of small-print terms that favor the seller.the seller.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Such a standard-form contract is Such a standard-form contract is called an called an adhesion contractadhesion contract. .
Smart buyers read the small print and Smart buyers read the small print and cross out items with which they cross out items with which they disagree.disagree.
The Contract to Buy a Vehicle The Contract to Buy a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
If you buy a car that continuously has If you buy a car that continuously has mechanical problems, you should mechanical problems, you should notify the seller immediately.notify the seller immediately.
What to Do if You Buy What to Do if You Buy a Defective Car a Defective Car
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The seller can be asked to The seller can be asked to
What to Do if You Buy What to Do if You Buy a Defective Car a Defective Car
fix the problemfix the problempay to have the vehicle fixedpay to have the vehicle fixedgive you your money back give you your money back
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Revoking the Acceptance Revoking the Acceptance
If you buy a car that doesn’t conform If you buy a car that doesn’t conform to the contract, you may be able to to the contract, you may be able to revoke your acceptance, even after revoke your acceptance, even after taking possession of the vehicle. taking possession of the vehicle.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Revoking the Acceptance Revoking the Acceptance
This revocation is allowed under the This revocation is allowed under the UCC if the defect is serious and UCC if the defect is serious and undetectable. undetectable.
It must be made within a reasonable It must be made within a reasonable time after the defect is discovered.time after the defect is discovered.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Notifying the Seller about Defects Notifying the Seller about Defects
Buyers must notify sellers of defects in Buyers must notify sellers of defects in vehicles within a reasonable time after vehicles within a reasonable time after the purchase. the purchase.
If you fail to do so, you may lose the If you fail to do so, you may lose the right to recover.right to recover.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
State Lemon Laws State Lemon Laws
Many states have passed “lemon Many states have passed “lemon laws” to protect consumers when they laws” to protect consumers when they buy defective vehicles, either new or buy defective vehicles, either new or used. used.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
State Lemon Laws State Lemon Laws
A “lemon” is defined in one state as “a A “lemon” is defined in one state as “a substantially defective new car that substantially defective new car that has been at a dealer’s three times for has been at a dealer’s three times for the repair of the same defect or any the repair of the same defect or any combination of defects.”combination of defects.”
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Name two places to buy a pre-owned vehicle.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
ANSWERANSWER
Answers include a new car dealer, a used car dealer, a car rental company, or a private party.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What federal laws help protect vehicle consumers?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The federal Motor Vehicle Information The federal Motor Vehicle Information and Cost Savings Act has established and Cost Savings Act has established bumper standards for passenger bumper standards for passenger vehicles. vehicles.
The act also establishes average fuel The act also establishes average fuel economy standards.economy standards.
Federal Consumer Protection Federal Consumer Protection
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
It is illegal for a vehicle owner to turn It is illegal for a vehicle owner to turn back or disconnect the odometer, or back or disconnect the odometer, or mileage indicator, of a vehicle. mileage indicator, of a vehicle.
Odometer Protection Odometer Protection
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
The federal odometer law requires The federal odometer law requires everyone who transfers a vehicle, everyone who transfers a vehicle, unless it is more than 25 years old, to unless it is more than 25 years old, to provide a written mileage disclosure provide a written mileage disclosure statement.statement.
Odometer Protection Odometer Protection
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Pre-Learning Question Pre-Learning Question
What state laws can help protect vehicle consumers?
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Many state laws require motor vehicle Many state laws require motor vehicle repair shops to be licensed and repair shops to be licensed and registered. Laws are being adopted in registered. Laws are being adopted in many states requiring:many states requiring:
Repairing a Vehicle Repairing a Vehicle
repair estimatesrepair estimatesadvanced disclosure of pricesadvanced disclosure of pricesspecific training for mechanics specific training for mechanics
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Some states require automobile repair Some states require automobile repair shops to be bonded. shops to be bonded.
The bonding company is an insurer The bonding company is an insurer who must pay the consumer for losses who must pay the consumer for losses suffered as a result of wrongdoing on suffered as a result of wrongdoing on the part of the repair shop.the part of the repair shop.
Repairing a Vehicle Repairing a Vehicle
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
1. What six aspects of the loan agreement should you be sure you understand before you sign the loan documents?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
(1) exact price (2) amount financed (3) finance charge (4) APR (5) number and amount of payments (6) total sales price
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
2. What should you do before you buy a new car?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
Determine how much you can afford; decide what car model/options you want; conduct research on pricing.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
3. Discuss the advantages and disadvantages of leasing a car.
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
Advantages: low down payment, smaller monthly payments. Disadvantages: most expensive way to obtain a new car; after making payments, you own nothing and have nothing to trade in on your next vehicle.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
4. Why might it be risky to purchase a pre-owned vehicle from a private party?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
Private parties do not give the implied warranty of merchantability. There is no recourse if something is wrong with it.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
5. What should you do if you buy a defective car?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
Notify the seller at once.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
6. What is the purpose of the federal odometer law?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
It requires everyone who transfers a vehicle, unless it is over 25 years old, to give the transferee a written mileage disclosure statement.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
7. Why do some states require auto repair shops to be bonded?
Section 16.1 Assessment
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Reviewing What You Learned
The bonding company acts as an insurer who must pay the consumer for losses if the repair shop causes damage.
Section 16.1 Assessment
Answer
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1 Assessment
Critical Thinking ActivityBuyer’s Guide Visit a used car dealer and read the Buyer’s Guides displayed on several of the cars. Decide whether you would be willing to purchase the cars based on the information provided in the Buyer’s Guides.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1 Assessment
Critical Thinking Activity AnswerBuyer’s Guide Answers will vary depending on the Buyer’s Guides the students inspect.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1 Assessment
Legal Skills in ActionAutomobile Warranties In teams of four, contact three automobile dealerships or car rental companies that sell used cars. Ask about the warranties they provide on the used cars they sell.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1 Assessment
Legal Skills in ActionAutomobile Warranties Make sure you find out if the warranties cover both parts and labor. Next, as a group, come to consensus as to which warranty is best.
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Understanding Business and Personal Law
Acquiring a Vehicle Acquiring a Vehicle Section 16.1Section 16.1
Owning a Vehicle
Section 16.1 Assessment
Legal Skills in Action AnswerAutomobile Warranties Answers will vary but should include a comparison of the different warranties located by the groups.
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Acquiring a Vehicle Acquiring a Vehicle End of Section 16.1End of Section 16.1