Jim and Laura Buyer visit the local car dealership
because they are interested in buying a new car. The car they currently have is
aging and is starting to have mechanical problems. Jim and Laura would share
the new car, and use it to go back and forth to work and school. Before going
to the dealership, Jim and Laura decide that they can only afford $400.00 a
month in car payments.
Once at the car dealership, Jim and Laura meet Stan
Salesman. Stan shows them several vehicles and Jim and Laura test-drive several
of the cars. Jim and Laura particularly like the blue 4-door sedan.
Therefore, they agree to give Stan Salesman a $100.00 deposit to hold the
car for a day. Stan Salesman does not give them the receipt but guarantees that
the $100.00 is refundable. No documents were signed.
The next day, Stan Salesman calls Jim and Laura to
ask them when they would like to take delivery of the car. Jim and Laura, on
the way home from the dealership, decided that they were not going to buy the
car because they did not want to spend that money each month. Therefore, Jim
and Laura tell Stan salesman that they have decided not to buy the car and
request their $100.00 deposit back.
Stan insists that the $100.00 was a deposit on the
car and was meant to be part of the contract to buy the car. Stan is very
persistent and insistent that Jim and Laura have contracted to buy the car;
therefore, the $100.00 will be applied to the purchase price of the car. Jim and
Laura are shocked and angry as not only do they not want to spend the money,
but now feel as though they are being duped by Stan Salesman.
Jim and Laura have an appointment to see a lawyer
in a few days, but know you are a student taking a business law class and come
to you for advice. They are very frazzled, and understandably upset that they
may have just purchased a car. Since you have been taking business law, you
have read and understand the elements of a contract and the defenses to a
contract. Therefore, although you are not a lawyer, you provide some basic
advice from what you’ve learned in your business law class.
In three to five (3-5) pages, advise Jim and Laura
based on the above facts as presented, the material provided in the text, and
material covered in the lecture. In your paper, be sure to address the
following:
1.
Define the elements of a legal contract using examples from the scenario
where applicable.
2.
Decide whether or not there was a contract for the purchase of the
automobile.
3.
Identify the facts from the scenario which support your decision on whether
or not a contract exists for the purchase of the automobile.
4.
Use at least two (2) quality academic resources in this assignment.Note: Wikipedia and other Websites do not qualify as quality academic
resources.
5.
Format your assignment according to the following formatting requirements:
o
Typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides.
o
Include a cover page containing the title of the assignment, the student’s
name, the professor’s name, the course title, and the date. The cover page is
not included in the required page length.
o
Include a reference page. Citations and references must follow APA format.
The reference page is not included in the required page length.
