BUSINESS LAW 1-CONTRACTS Use the following facts to answer Questions 8 through 1
ID: 2511156 • 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.”
Assume for purposes of this question only that Big Tex makes Tommy a valid offer to sell him the car for $4,500, and Tommy responds in the manner described in Statement 10 above. Can Tommy later change his mind and accept Big Tex’s original offer?
a. Yes
b. No
Explanation / Answer
answer --b
no,big tex offered car for $4500 but Tommy dont accept and set price of $4000
and then Big Tex offered car for $4400 and tommy asked for $4250
at last Big tex and Tommy mutually agreed at that price
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