1. Grades, Standards and Warranties
Obj. 2.06
Grades, Standards and Warranties

2. Appearance and Condition
Grades and Standards
How did Grades and Standards affect your food?
Fresh Fruit
Milk
Inspected
Appearance and Condition
Eggs
Quality

3. Specific tire sizes to fit our specific cars
ALL children’s fever-reducing medicine contains:
same ingredients
same doses
(regardless of what brand it is)

4. Movies:
Ratings
Restaurants:
Ratings
Rated: R

5. Grades and Standards
Grades: Ratings assigned to products that tell to what extent standards were met
Standards: Specifications that are used as a basis for comparing or judging goods or services

6. Grades and Standards What do you have to do to earn a good grade?
What are some standards being used in your classes?
What do you have to do to earn a good grade?
A = Excellent!

7. Grades and Standards
These requirements now become your standards that the teacher uses as her evaluation tool
Your work compared to standards = GRADE

8. Grades and Standards How do Businesses use Grades and Standards?
Standards are set (size, color, quality)
Products are rated against standards and assigned a grade

9. Examples of Grading USDA AA, A, B Exterior, Interior, Size
Eggs
USDA
AA, A, B
Exterior, Interior, Size
Southern States
flowers
Columbian Flowers
Length of stem
Fancy, Standard, Short
Grading Standards

10. Grades and Standards Examples of Graded Products
Agricultural raw materials- like cotton
Food Products:
USDA- Meat
Dairy
Fresh Produce
Fish
3. Oil- Graded according to its thickness
4. Fuel- Graded according to its octane rating
5. Coal- Graded according to its carbon and sulfur content
6. Lumber- Hardwoods are graded according to size, quality, and type of wood

11. What do businesses do with products that fail to meet lowest standards?
Products are disposed of or revamped

12. Organizations develop standards to:
Make sure products are reliable
Make sure products are used correctly and safely****
Determine where certain products can be sold

13. Who develops grades and standards?
Government Agencies: ex. food, medicines, fair advertising (USDA, CPSC) **if transporting products across state lines
Professional Organizations: ex. AAA Rates Hotels
Businesses
Non-governmental*** grading = “voluntary”

14. Importance of grades and standards in a Global Market
By using certain requirements, products are known safe to use internationally.
The standard is known as IS0 9000

15. ***Consumers do not have to
Grades and Standards aid in the buying and selling process by speeding things up.
***Consumers do not have to
inspect before buying.

16. What is a warranty?
A defined promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected

17. What is a guarantee?
Promise made by the seller to the consumer that the seller will refund the consumer’s purchase price if the product doesn’t perform as expected.
AKA – “Money-back guarantees”
While warranties usually apply to goods, guarantees are given for both goods and services

18. Types of warranties Express Warranty
***Promises expressed in a specific statement concerning the quality of the product
Can be written or oral

19. Implied Warranty
Unwritten, unstated warranty understood by the consumer and the seller that a product will perform as expected
The product will do what it is designed and recommended to do
EX: ***toaster, car audio system

20. Full Warranty Limited Warranty Cover the entire product
If the product doesn’t work it must be made good in a reasonable time, if not the customer can choose a replacement or refund
Limited Warranty
Do not contain the provisions of full warranties,
may cover only certain repairs or specific parts

21. effective guarantee Easy for the customer to implement
Not a lot of forms, people to see , and different locations
Easy for the customer to collect
When possible money should be refunded on the spot
Unconditional
No conditions for the customer to meet
Understandable
Clear language and no difficulty understanding the promises

22. Purposes of warranties and guarantees
Reassure prospective customers
Protect the producer and seller***
Gain repeat customers
Increase sales
Use as promotional tool
Competitive tool
Image builder

23. You do: WRITE in your notebook
Use the Internet to locate information about a recent case involving the Consumer Product Safety Commission (CPSC) or any other government regulatory agency. Record the following information:
Name of the company
Nature of the product safety issue
Outcome of the case