See Chapters 10-14 of the text
to help understand some of the legal issues covered in this assignment.
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.
