Question

In: Operations Management

John Smith is 16 years old; his parents purchase a red Volkswagen bug for his birthday....

John Smith is 16 years old; his parents purchase a red Volkswagen bug for his birthday. He does not like the car because he wanted a red Porche. The parents take the car back to the dealership. The parents tell the dealership this contract is void because our son lacked capacity to enter into this contract. Are the parents right? Use IRAC format.

Solutions

Expert Solution

Issue= Whether the contract between the parents and the dealer is valid or void?

Rule- A contract is valid if it has all the elements of the valid contract such as offer and acceptance, the legality of the contract, capacity to enter in the contract, consideration.

Application= If we look at the given case, the contract between the dealer and the parents has all the elements of the contract. There were an offer and acceptance the purpose of the contract was legal, parents and the dealer has the capacity to enter the contract and there was a valid consideration of car and money in return.

Conclusion= The parents were not correct as the contract was valid. The contract was not made between the kid and the dealer, in fact the contract was between the dealer and the parents and all the elements of a valid contract were fulfilled. So the parents of John Smith were not right.

KINDLY RATE THE ANSWER AS THUMBS UP. THANKS, A LOT.


Related Solutions

Mike is currently 10 years old and his parents are planning the finance of his college...
Mike is currently 10 years old and his parents are planning the finance of his college expenses. They will set up a bank account and deposit $X one year from today and will deposit 4% more each subsequent year. The last deposit will be 11 years from today. College expenses of $40,000 will occur 8, 9, 10, and 11 years from today. What is X if all the deposits exactly pay for Mike’s college expenses? Assume the effective annual interest...
Today is John Smith's birthday, turning 70 years old. Theaverage life expectancy of a 70...
Today is John Smith's birthday, turning 70 years old. The average life expectancy of a 70 years old male is about 10 years. Mr. Smith wishes to buy an investment that will pay him an annuity payment, with the first payment starting today. He then wants a payment every year on his birthday up to and including the final payment on his 80th birthday, 11 payments from now. If John receives $350,000.00 for each payment on his birthday, starting today,...
Joshua is a 7 years old class 2 student who lives with his parents and his...
Joshua is a 7 years old class 2 student who lives with his parents and his 4 siblings in a rural settlement and has been diagnosed with a CHRONIC ILLNESS of TUBERCULOSIS that will require frequent admission or visits to the hospital. His father is a security officer and his mother stays home and is a house wife.    TUBERCULOSIS 1. overview and Etiology of the chronic illness you have chosen. 2. Discuss the significance of the pathophysiology and clinical manifestations...
Joshua is a 7 years old class 2 student who lives with his parents and his...
Joshua is a 7 years old class 2 student who lives with his parents and his 4 siblings in a rural settlement and has been diagnosed with a CHRONIC ILLNESS of TUBERCULOSIS that will require frequent admission or visits to the hospital. His father is a security officer and his mother stays home and is a housewife.    TUBERCULOSIS Using the development theory, discuss the impacts of the chronic illness on Joshua's growth and development with reference to the literature. Discuss...
16. Suppose John has an income of $300 and spends his income to purchase two goods...
16. Suppose John has an income of $300 and spends his income to purchase two goods (X and Y ). Price of Y is $5 and the price of X is $10. Furthermore, John always consumes 2 units of Y with 1 unit of X. (a) How many units of X and Y should John consume in order to maximize his utility? (b) Suppose that the price of X goes up to $15 (income and price of Y are the...
John Wayne is 50 years old and plans to retire in 20 years. His new employer...
John Wayne is 50 years old and plans to retire in 20 years. His new employer provides 401K retirement plan and he plans to accumulate $1,000,000 in his retirement account by age of 70. Use Excel to answer the following questions. How much he has to contribute per year at return of 7% per year to reach his retirement goal. Redo part (a) if john decides to increase his contribution 0.50% per year over 20 years. c.Redo part (a) if...
John starts his career at 21 years old and expects to retire 44 years later at...
John starts his career at 21 years old and expects to retire 44 years later at the age of 65. His first annual salary is $72,000 that will increase at 1.5% per year until he finishes his part-time MBA at 28 years old. With his MBA, John expects salary to increase at 3% per year until retirement. At the end of each year, he deposits 10% of his annual salary into a retirement saving plan that pays 6% interest per...
John starts his career at 21 years old and expects to retire 44 years later at...
John starts his career at 21 years old and expects to retire 44 years later at the age of 65. His first annual salary is $72,000 that will increase at 1.5% per year until he finishes his part-time MBA at 28 years old. With his MBA, John expects salary to increase at 3% per year until retirement. At the end of each year, he deposits 10% of his annual salary into a retirement saving plan that pays 6% interest per...
Adam is turning 40 years old today and plans to retire on his 65th birthday. He...
Adam is turning 40 years old today and plans to retire on his 65th birthday. He starts making annual deposits ( starting on the day of his 40th birthday) into an account that pays 15% compunded quarterly. He plans to withdraw $10,000 quarterly from the account starting on his 65th birthday unitil his 75th birthday (inclusive). Note that the lst deposit is made at the same time as the first withdrawal. what is the effective interest rate for deposits? WHat...
John invited four friends to his birthday party and his friends will arrive independently of one...
John invited four friends to his birthday party and his friends will arrive independently of one another. The arrival time x for each friend is uniform over (0; 4) and these arrival times are i.i.d. Answer to the following questions: (a) the density of the arrival time who arrives at second. (b) the probability that the second person to arrive between 0 and 2. (c) the expected arrival time of the second person to arrive.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT