Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brenda Howard needed a new car, so she went online to look for cars and dealerships. Since she works long hours, she specifically went looking

Brenda Howard needed a new car, so she went online to look for cars and dealerships. Since she works long hours, she specifically went looking for a dealership that promoted itself as efficient in the car-buying process, and she found one called Prize Autos. Prize Autos' website splash page said, "Buy it in an hour, keep it for seven days, and bring it back if you're not satisfied."  It also said with, "Subject to Terms & Conditions," with a hyperlink to the Terms & Conditions. 
 
Online, Brenda saw that Prize Autos had a Voyager listed at a "no-haggle price of $23,000."  After she clicked "accept" on the Terms & Conditions, the website allowed for her to place it on  hold by putting down a credit card for a charge of $3,000, creditable towards the purchase. Since she clicked "accept" without reading the Terms & Conditions, she did not know that the Terms & Conditions included a $750 Restocking Fee for returned vehicles. She put it on hold on Friday morning at 5:00 am; at lunchtime, she transferred the balance due from her savings account to Prize Autos. She picked up the car at 7:00 pm from salesperson Guillermo Reyes.
 
After driving the Voyager for the weekend, she decided she should settle for a cheaper car, so on the following Monday night at 8:00 pm, she went to the dealership. However, the dealership had already closed, so she left the keys in the Overnight Drop Off box for the Service Department and sent an email to Guillermo that she had returned the car.  In the email, she demanded a refund of the $23,000. Prize Autos retained a $750 restocking fee and refunded the rest by doing an electronic deposit on Tuesday.

Brenda posted a review on the Prize Autos site that said, "These people are unethical. Do NOT do business with them. After promising me I could test-drive the car for a week, they kept $750 of my money. Stay away from Guillermo Reyes!" Prior to the review, Guillermo earned about $8,000 per month in commissions. After the review, his average commissions dropped in half. 

Read the case and answer the questions below:

1. Is Brenda entitled to a refund of the $750? Be sure to explain your answer.

2. If Guillermo sued Brenda for defamation, what would be the result? Be sure to explain your answer.

Step by Step Solution

3.46 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

1 Brenda would not be entitled to a full refund of the 750 Restocking Fee based on the information provided The dealerships website clearly stated tha... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management A Practical Introduction

Authors: Angelo Kinicki, Brian Williams

5th edition

978-1111821227, 9781133190363, 1111821224, 1133190367, 978-0078112713

More Books

Students also viewed these Law questions