Car buying
Person A and Person B 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. Person A and Person B would share the new car, and use it to go back and forth to work and school. Before going to the dealership, Person A and Person B decide that they can only afford $400.00 a month in car payments.
Once at the car dealership, Person A and Person B meet Person XYZ Salesman. Person XYZ shows them several vehicles and Person A and Person B test-drive several of the cars. Person A and Person B particularly like the blue 4-door sedan. Therefore, they agree to give Person XYZ Salesman a $100.00 deposit to hold the car for a day. Person XYZ Salesman does not give them the receipt but guarantees that the $100.00 is refundable. No documents were signed.
The next day, Person XYZ Salesman calls Person A and Person B to ask them when they would like to take delivery of the car. Person A and Person B, 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, Person A and Person B tell Person XYZ Salesman that they have decided not to buy the car and request their $100.00 deposit back.
Person XYZ insists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Person XYZ is very persistent and insistent that Person A and Person B have contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car. Person A and Person B 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 Person XYZ Salesman.
Person A and Person B 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 under Person XYZ dably upset that they may have just purchased a car. Since you have been taking business law, you have read and under Person XYZd 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.
ASSIGNMENT: In three to five (3-5) pages, advise Person A and Person B based on the above facts as presented and the material covered in the lessons. In your paper, be sure to address the following:
Define the elements of a legal contract using examples from the scenario where applicable.
Decide whether or not there was a contract for the purchase of the automobile.
Identify the facts from the scenario which support your decision on whether or not a contract exists for the purchase of the automobile.
In order to foster learning and growth, all essays you submit must be newly written specifically for this course. Any recycled work will be sent back with a 0, and you will be given one attempt to redo the touchstone.
