Larson Lexus, a new car dealer, runs the following newspaper ad during the fall
ID: 387988 • Letter: L
Question
Larson Lexus, a new car dealer, runs the following newspaper ad during the fall of 2005. “Three 2004 Lexus LS 400s must go! $55,000 each! The first three customers who arrive at our dealership on Saturday, October 8th with this ad can buy one of these cars for $55,000.” Knowing that this is a great price for this car, Mike is the first customer to appear at the Larson lot on Saturday, October 8th. He hands the ad to the Larson salesman and says that he’d like to buy one of the LS-400s for $55,000. Is the dealership contractually bound to sell Mike the car at that price? Define the legal issue and make an argument that there was a contract and make an argument that there was not a contract.
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ISSUE: (with question)
ANALYSIS:
CONCLUSION:
Explanation / Answer
IS he dealership contractually bound to sell mike the car at that price ?
THe answer is yes and no !
Yes, because now since as per the advvertisement mike is well on time and since he is the first customer to arrive he has his own right to buy by the way of suggestion the advertisement makes here ( first 3 customers ) . Since, Mike also carrys a proof of his claim that he has in the form of an advert pamphlet he is entitiled to and should be awared with the Car in return of the sum of $55000. The dealer is bound to sell the car to Mike since he has made it so far. However, to say that he is contractually bound to sell this car to him would be overboard because the very defination of the CONTRACT differs in day to day life and its very own meaning in Legality.
Conclusion :
No, Because although mike made it first to the dealership but still the dealership has its own right ( in the view of terms and conditions that may be with him ) to deny the hand over of the car. There is no legal contract yet between the two parties. There are very specific components of a contract in legal terms that are missing here. For an example the consideration ( $55000 ) is there but the promise ( the acceptance by both the parties)is not there on the paper yet.
The dealer will always have a defense that an advert for the purpose of promoting his dealership in the form of an advert cannot be used against him as an evidence legaly.
ISSUE : the issue is that there is not enough information furnished in the statement provided , so that we can look at this situation from the view point of a Contract( components of a contract). Therefore there will always be a situation of doubt associated with this particular situation and can be debatable.
Analysis : AS mentiond above that this very incomplete situation can be taken in favor or against the dealership. where in deception or advert, either one can take a stance.
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