Did jim and laura buy a car? business law 3 pages

 

Touchstone: Did Jim and Laura Buy a Car? 

SCENARIO: 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 car payments.

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.

ASSIGNMENT: In three  pages, advise Jim and Laura  based on the above facts as presented and the material covered in the  lessons. In your paper, be sure to address the following:

  1. Define the elements of a legal contract using examples from the scenario where applicable. 
  2. Decide whether or not there was a contract for the purchase of the automobile.  
  3. Identify the facts from the scenario which support your decision on  whether or not a contract exists for the purchase of the automobile.  
  4. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as quality academic resources. 
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