Gavin Tells Rod That He Will Pay Him $400 to Paint

question 4

Multiple Choice

Gavin tells Rod that he will pay him $400 to paint his house.Rod starts to paint,intending to accept.Halfway through his paint job,Gavin tells Rod that he wants to revoke the offer.Under this scenario:

• A) Gavin is not allowed to revoke because the contract is unilateral.
• B) Gavin is allowed to revoke but is liable to Rod for the reasonable value of benefit received.
• C) Gavin may not revoke because the contract is bilateral.
• D) Gavin is allowed to revoke if he finds Rod's efforts half-hearted or ineffective.

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Definitions:

Penetration Pricing

A pricing strategy where a product is priced lower than the competition to attract customers and gain market share quickly.

Mass Market

Refers to the large, undifferentiated market of consumers with a wide range of product needs and preferences, often targeted by companies with products of broad appeal.

Penetration Pricing

A pricing strategy where a product is introduced to the market at a low price to attract customers and gain market share quickly.

Price-sensitive

Referring to consumers whose buying behavior can be significantly influenced by price changes of products or services.