BUSINESS LAW 1- CONTRACTS Use the following facts to answer Questions 8 through
ID: 2511139 • Letter: B
Question
BUSINESS LAW 1- CONTRACTS
Use the following facts to answer Questions 8 through 17
Tommy Tarleton needs a new car. He currently owns a mega monster truck that he bought when he was making bank as a hand model, but that work dried up after an unfortunate table saw accident that he’d rather not talk about. Without his modeling work, he can’t afford gas for his truck. What’s more, he doesn’t have much cash on hand, and his credit is shot. Having little other choice, he drives down to a local used car lot, a crummy little spot called Big Tex’s Car Shack, where Big Tex “stacks ‘em deep and sells ‘em cheap.”
When Tommy gets on the lot, Big Tex himself helps Tommy. After Tommy and Big Tex trade pleasantries, the following conversation occurs:
Statement 1 (Big Tex): “So Tommy – it’s okay if I call you Tommy isn’t it? What can I do for you today?”
Statement 2 (Tommy): “I’m thinking about buying that bright red Ford Fiesta over there.”
Statement 3 (Big Tex): “Oh yeah? Well, she’s a real beauty. Owned by a little old lady. She only drove it to church on Sundays. Never been wrecked, and it only has 25,000 miles on it.”
Statement 4 (Tommy): “That sounds great. I absolutely do not want to buy a car that has been in a wreck.”
Statement 5 (Big Tex): “So waddaya think Tommy? Would you give me $5,000 for her?”
Statement 6 (Tommy): “Would you take $4,000?”
Statement 7 (Big Tex): “I couldn’t do $4,000, but I will take $4,500 for her.”
Statement 8 (Tommy): “Would you consider taking $4,000 if I trade in my mega monster truck too?”
Statement 9 (Big Tex): “No. With gas prices on the rise, I’d have trouble selling it.”
Statement 10 (Tommy): “I understand, but I won’t give you $4,500 for it. It’s not worth that much.”
Statement 11 (Big Tex): “I’ll take $4,400 for her, but that’s the best I can do.”
Statement 12 (Tommy): “I’ll give you $4,250.”
Statement 13 (Big Tex): “You drive a hard bargain Tommy. I like that. Reminds me of me. You’ve got a deal.”
8. The first offer in the conversation above occurs in:
a. Statement 2
b. Statement 5
c. Statement 6
d. Statement 7
e. Statement 11
Explanation / Answer
Offer begins when a person proposes a deal for buying or selling something. The offer given by the offeror can be accepted or rejected by the offeree.If an offer is accepted, that offer becomes acceptance. offer can end if it is rejected by the offeree. In order to determine whether a statement is an offer or not, the statement should indicate to make a deal.
In this case, statement 5 is the first offer in the conversation given by big tex to Tommy to buy a car. The statement is the mere invitation to treat. statement 6,7, and 11 are the following offers exchanged between big tex and Tommy.
The answer is Statement 5.
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