Jason Agrees to Buy a Computer for $2,000 and Puts

question 78

Multiple Choice

Jason agrees to buy a computer for $2,000 and puts $100 down to hold the computer, promising to return in a few days to pay the balance. Jason has an acute case of buyer's remorse and decides he doesn't want the computer. Which of the following is TRUE?

• A)The $100 payment is called a deposit in law.
• B)Jason has a legal right to the return of the $100 because he cancelled the deal.
• C)Jason has a legal right to the return of the $100 because he didn't get the computer.
• D)Jason has no legal right to get the $100 back
• E)Both A and D

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Definitions:

Outside Funds

Capital sourced from external investors or institutions, outside of the company’s existing financial resources, used for expansion, operations, or investment.

Debt

Money that is owed or due to be paid to someone else, often resulting from loans or credit.

Equity

Equity represents the value of an owner's interest in a property or business, after deducting liabilities.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain with a lender as part of the terms of a loan.