Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wendy Daze, a19 year oldcollege sophomore, wants to purchase a car from Reliable Motors.She tells the sales representative that her payments cannot exceed $400.00 per

Wendy Daze, a19 year oldcollege sophomore, wants to purchase a car from Reliable Motors.She tells the sales representative that her payments cannot exceed $400.00 per month.After looking at several models of cars, she selects a2014Sportswagonproviding her payments will be under $400.00.The sales rep tells Wendy that the car sells for $16,500, but there is a $1,000 holiday bonus rebate and she will get credit for trading in her old 2008model Ford. However, there will be taxes and processing fees added to the total.Wendy agrees as long as her payments are under $400.The sales rep takes the paperwork to the financial manager to draw up the contract.When the sales rep comes back, he tells Wendy that the final cost of the car is $14,000 and her payments will be $390.00 per month.Wendy signs the contract and drives away in the car.Two months later, Wendy receives a letter from the finance office of Reliable Motors stating that when they calculated her costs, they made an error and the actual cost of the car is $15,100, and she would have to send them a certified check for $1,100 or they would take legal action against her. b. What type of mistake happened on this contract?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Managerial economics applications strategy and tactics

Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris

12th Edition

9781133008071, 1439079234, 1133008070, 978-1439079232

Students also viewed these Law questions

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago