Question

In: Finance

A Best Buy circular in your local newspaper advertises a Samsung 75-inch TV for $2,000. You...

  1. A Best Buy circular in your local newspaper advertises a Samsung 75-inch TV for $2,000. You arrive at the store and find the TV with a $2,000 price tag on it. You bring the TV to the front register. The cashier takes the TV and rings it up. You give the cashier $2,000. The cashier takes the money and gives you a receipt for the purchase. Who made the offer and when/where did the offer take place?

  1. Best Buy made the offer to sell the TV for $2,000 in the circular advertisement.
  2. Best Buy made the offer to sell the TV for $2,000 when it put the price tag for $2,000 on it.
  3. You made the offer to buy the TV for $2,000 when you picked up the TV from the shelf and brought it to the register.
  4. You made the offer to buy the TV for $2,000 when you handed the cashier $2,000 for the TV.
  1. John and Amy formed Custom T-Shirt Co., a partnership that sells t-shirts. John’s little brother, Mike, is not a partner, but he tells Brenda that he is a partner of Custom T-Shirt Co. Mike promises that in exchange for $500 paid upon delivery, Custom T-Shirt Co. will provide 50 t-shirts for Brenda’s charity event next week. Brenda has no reason to know that Mike is not a partner of Custom T-Shirt Co., so she stops looking for t-shirts for her event from other vendors, relying on Mike’s promise. The day of the event, the t-shirts are not delivered, as Mike was not actually a partner of Custom T-Shirt Co., and John and Amy had no idea about the order. Brenda must purchase rush-order shirts from Quick T-Shirt Co. at $20 per shirt. Is Mike liable for damages? Why or why not?

  1. Yes, because he would have been the one to collect the money from Brend
  2. Yes, because the court would find partnership by estoppel.
  3. No, because Mike is not a partner of Custom T-Shirt Co. in reality.
  4. No, because Brenda should have done research on Custom T-Shirt Co., and she then would have learned that Mike was not a partner and could not make a promise to deliver the shirts.

Solutions

Expert Solution

.1.A Best Buy circular in your local newspaper advertises a Samsung 75-inch TV for $2,000. You arrive at the store and find the TV with a $2,000 price tag on it. You bring the TV to the front register. The cashier takes the TV and rings it up. You give the cashier $2,000. The cashier takes the money and gives you a receipt for the purchase. Who made the offer and when/where did the offer take place?

.a Best Buy made the offer to sell the TV for $2,000 in the circular advertisement.

.2.. John and Amy formed Custom T-Shirt Co., a partnership that sells t-shirts. John’s little brother, Mike, is not a partner, but he tells Brenda that he is a partner of Custom T-Shirt Co. Mike promises that in exchange for $500 paid upon delivery, Custom T-Shirt Co. will provide 50 t-shirts for Brenda’s charity event next week. Brenda has no reason to know that Mike is not a partner of Custom T-Shirt Co., so she stops looking for t-shirts for her event from other vendors, relying on Mike’s promise. The day of the event, the t-shirts are not delivered, as Mike was not actually a partner of Custom T-Shirt Co., and John and Amy had no idea about the order. Brenda must purchase rush-order shirts from Quick T-Shirt Co. at $20 per shirt. Is Mike liable for damages? Why or why not?

ANSWER;

.a.Yes, because he would have been the one to collect the money from Brend


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