Harry Saw Joe in His Classic Buick at a Local

question 61

Essay

Harry saw Joe in his classic Buick at a local drive-in restaurant and told Joe that he'd like to buy the car. He offered him $15,000. Joe said he had to think about it and that he'd let Harry know. Two days later, Joe decided that he needed the money and couldn't afford to keep the car. He wrote Harry a letter accepting his offer and mailed it that afternoon. The next day, Harry phoned and told Joe he'd changed his mind and that he needed the money for something else. Joe told him about the letter, and in fact Harry received the letter that day after his phone conversation with Joe. Joe insisted on going through with the deal. Explain the legal liability of the parties.

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Definitions:

Profit-maximizing

A strategy or approach that aims to achieve the highest possible profit from business activities.

Marginal Revenue

The revenue increase from selling an additional good or service unit.

Competitive Price-searcher

A market condition where firms have some control over pricing because their products are differentiated, but they must still consider competitors' prices in their pricing strategy.

Retail Selling

The process of selling goods or services directly to consumers through various channels, such as stores, online platforms, or by phone.