Jim and Laura Buyer visit a local car dealership because they are interested in buying a new car. The car they currently have is ageing 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.
Step 2: Write the Touchstone
Write a 750–1000-word paper in which you analyze the situation and answer the central legal question: Did Jim and Laura enter a valid contract to buy the car?
Your paper should include the following components:
1. Contract Definition: Identify and define the elements that must be present for a legal contract to exist. Provide a brief example of each element.
2. Case Support: Analyze the specific facts presented in the scenario and determine whether the elements of a contract are present. Support your analysis with in-text citations that reference at least two academic sources, one of which must be an outside source.
3. Case Judgement: Decide whether Jim and Laura entered a contract with Stan Salesman for the purchase of the automobile. Your judgment should be clearly stated and backed by your previous analysis.
4. Reference Page: Include a list of references in APA format for any source you cite in your paper, including tutorials from this course.
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