A Said to B, "I'll Give You $100 for That

question 4

Multiple Choice

A said to B, "I'll give you $100 for that bracelet." B replied, "$135." A said, "No thanks." B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?

• A) A's offer of $100 was open and accepted by B, thereby forming a contract.
• B) B's counteroffer of $135 terminated A's offer of $100.
• C) B's statement, "$135" was a negotiating statement that did not terminate A's original offer of $100.
• D) A's offer of $100 was irrevocable.

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Definitions:

Determinant Attributes

Key features or characteristics of a product or service that influence the buyer's decision to purchase.

Financial Risk

The possibility of losing money on investments or business activities, encompassing a wide range of risks including market, credit, operational, and liquidity risks.

Noncompensatory Decision Rule

At work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.

Compensatory Decision Rule

At work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.