BUSI 506 – LEGAL AND ETHICAL ENVIRONMENT
FINAL EXAMINATION – 6
QUESTION 6
Tom Garrity, Bill Simmons, and Edward Yang were close friends. On several occasions, Edward expressed his interest in a particular stereo receiver Tom owned, the classic Marantz Model 4400. Edward often told Tom that if he ever wanted to sell the receiver, he would like to be first considered as the buyer.
Last Saturday morning, Tom and Bill were at Tom’s house. During their conversation, Tom stated “Bill, I know how much Edward loves my Marantz 4400 receiver, and I have too much stereo equipment in the house. I have decided that I will sell my Marantz 4400 to Edward for $200. It is worth at least $600, and it is the only Marantz receiver that I own.”
Later that day, Edward appeared at Tom’s house. Edward enthusiastically proclaimed “Tom, Bill told me about your offer, and I will take the Marantz 4400 for $200. This is the classic receiver as far as I am concerned, and I am forever grateful to you! I promise I will take care of it, and you can have lifetime visitation rights!”
Tom was perplexed. After his conversation with Bill on Saturday morning, he had decided to keep the Marantz 4400 and sell all of his other receivers. “Edward, I am sorry, but I have decided not to sell the Marantz 4400. We can discuss selling any of my other receivers, but the Marantz is ‘off-limits’.” Edward’s reply? “We have an agreement, Tom. You made me an offer, and I accepted your offer. Here is the $200. Where is the receiver?”
Is there a contract between Tom Garrity and Edward Yang? Does Edward have a claim? Please explain (20 Points)
BUSI 506 – LEGAL AND ETHICAL ENVIRONMENT
FINAL EXAMINATION – 6
QUESTION 6
Tom Garrity, Bill Simmons, and Edward Yang were close friends. On several occasions, Edward expressed his interest in a particular stereo receiver Tom owned, the classic Marantz Model 4400. Edward often told Tom that if he ever wanted to sell the receiver, he would like to be first considered as the buyer.
Last Saturday morning, Tom and Bill were at Tom’s house. During their conversation, Tom stated “Bill, I know how much Edward loves my Marantz 4400 receiver, and I have too much stereo equipment in the house. I have decided that I will sell my Marantz 4400 to Edward for $200. It is worth at least $600, and it is the only Marantz receiver that I own.”
Later that day, Edward appeared at Tom’s house. Edward enthusiastically proclaimed “Tom, Bill told me about your offer, and I will take the Marantz 4400 for $200. This is the classic receiver as far as I am concerned, and I am forever grateful to you! I promise I will take care of it, and you can have lifetime visitation rights!”
Tom was perplexed. After his conversation with Bill on Saturday morning, he had decided to keep the Marantz 4400 and sell all of his other receivers. “Edward, I am sorry, but I have decided not to sell the Marantz 4400. We can discuss selling any of my other receivers, but the Marantz is ‘off-limits’.” Edward’s reply? “We have an agreement, Tom. You made me an offer, and I accepted your offer. Here is the $200. Where is the receiver?”
Is there a contract between Tom Garrity and Edward Yang? Does Edward have a claim? Please explain (20 Points)