Dwight Goes to Bakersfield Cadillac and Tries to Work Out

question 5

Multiple Choice

Dwight goes to Bakersfield Cadillac and tries to work out a deal on a new Caddy. Dwight picks out the model he likes and makes an offer of $25,000. Sensing that he is opposite a man of means, the salesman laughs and suggests a price of $35,000 is more in order. Dwight counters with a price of $30,000. The salesman thinks about the price for a minute, then counters with a price of $32,500. Dwight leaves, upset that he could not get the car for $30,000, the price he was willing to pay. The next day, the salesman calls to tell Dwight that his car is on the way and that the salesman thinks $30,000 is a good price. Dwight thinks he is bound to the deal because the salesman has apparently accepted Dwight's last price. Bewildered, Dwight just hangs up the telephone. Is there a contract at $30,000?

• A) Yes, because Dwight made the $30,000 offer in good faith.
• B) Yes, because Dwight was silent when the salesman told him the car was on its way.
• C) No, the salesman's counteroffer of $32,500 terminated Dwight's $30,000 offer.
• D) No, because Dwight's offer was only open for a reasonable time, and more than a day is not reasonable.