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
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 (3) 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:
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
Identify the facts from the scenario which support your decision
on whether or not a contract exists for the purchase of the automobile.
Use at least two (2) quality academic resources in this
assignment. Note: Wikipedia and other Websites do not qualify as
quality academic resources.
Format your assignment according to the following formatting
Typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides.
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.
Include a reference page. Citations and references must follow
APA format. The reference page is not included in the required page length